ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC

NEWS RELEASE

For Immediate Release Tuesday, September 18, 2007

For More Information, Please Contact:

Scott Marra, ISDA New York, 212-901-6013, smarra@isda.org

 

 

ISDA LAUNCHES THE ISDA EQUITY MCA PROTOCOL

 

 

NEW YORK, Tuesday, September 18, 2007 – The International Swaps and Derivatives Association (ISDA) today announced the launch of ISDA Equity MCA Protocol, which represents a significant step in a program to enhance operational efficiency in the equity derivatives markets internationally. 

 

The purpose of the Protocol is to allow market participants to agree to incorporate by reference, on a multilateral basis with other adhering counterparties, the terms of any one or all of the following Master Confirmation Agreements that ISDA has published:

 

  • 2007 Americas Master Variance Swap Confirmation Agreement
  • 2007 AEJ Master Variance Swap Confirmation Agreement
  • 2007 European Master Equity Confirmation Agreement (covers options and equity finance share swaps referencing European underliers)
  • Revised 2007 European Variance Swap Master Confirmation Agreement
  • 2006 Japan Variance Swap Master Confirmation Agreement

 

The Equity Finance Swap (EFS) Annex to the 2007 European Master Equity Confirmation Agreement, published on Monday, September 17, is also included in ISDA’s Equity MCA Protocol. ISDA produced the EFS Annex in collaboration with the Managed Funds Association (MFA) and its membership with a common goal to improve operational efficiencies for key equity derivatives products by creating an industry standard set of terms for documenting these types of transactions.

 

The Protocol, a so-called ‘evergreen’ protocol that will remain open on a permanent basis, is open to ISDA members and non-members alike. The text of the Protocol and form of adherence letter, guidance on the mechanics of the Protocol, answers to frequently asked questions and details on adherents, are all available at www.isda.org.

 

“As ISDA’s Master Confirmation Agreements covered by the ISDA Equity MCA Protocol are client-facing documents, these publications play a major role in reducing outstanding confirmations and thus meet the requirements of public policy makers” said Robert Pickel, ISDA CEO.

 

About ISDA

ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has approximately 820 member institutions from 55 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.

 

 

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