For
Immediate Release Wednesday, July 5, 2006
For More Information, Please Contact:
ISDA Welcomes
NEW YORK, Wednesday, July 5, 2006 – The
International Swaps and Derivatives Association (ISDA) today welcomed the
United States’ and Switzerland’s signature of the Hague Securities Convention,
an international treaty that provides a uniform legal approach to determining
governing law for cross-border securities transactions.
As
part of its mission to enhance legal certainty in the privately negotiated
derivatives business, ISDA has been involved over the past six years in the
development of the treaty, which is designed to address the appropriate law
that governs the legal nature and effects of rights resulting from movements of
securities across jurisdictions, i.e., which law applies to intermediated
securities. The Hague Securities Convention is designed to apply whenever
there is the potential that the law of more than one country would come into
play. Among other areas in which this matter can arise is the posting of
securities as collateral, a common risk mitigation tool in the derivatives industry.
While
the
“Endorsement
of the treaty by these authorities represents a major advancement in legal
certainty for cross-border securities transactions,” said
About
ISDA
ISDA,
which represents participants in the privately negotiated derivatives industry,
is the largest global financial trade association, by number of member firms.
ISDA was chartered in 1985, and today has over 700 member institutions from 50 countries on six continents.
These members include most of the world's major institutions that deal in
privately negotiated derivatives, as well as many of the businesses,
governmental entities and other end users that rely on over-the-counter
derivatives to manage efficiently the financial market risks inherent in their
core economic activities. Information
about ISDA and its activities is available on the Association's web site: www.isda.org.