For Immediate Release Thursday, December 1, 2005
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ISDA Novation Protocol Closes With Almost 2,000 Adherents
“This degree of support for the Novation
Protocol is a major achievement for ISDA and for the industry,” said
The protocol addresses directly the potential for backlogs and uncertainty associated with the transfer of a party’s position in a privately negotiated derivatives transaction. In line with the increasing adoption of technological solutions to expedite and enhance the confirmation process, the protocol streamlines the process of transferring trades to same-day execution.
The move is one of a series of measures taken by ISDA and its membership to help reduce the potential for confirmation backlogs in privately negotiated derivatives. The Association has published a series of documents outlining timetables for tighter end-to-end processing and increased automation of bilaterally negotiated derivatives processing.
The adherence period for the protocol closed on November 30. A list of adherents is available at www.isda.org.
ISDA is the global trade association representing leading participants in the privately negotiated derivatives industry. ISDA was chartered in 1985, and today has more than 650 member institutions from 47 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.