ISDA             

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Wednesday, May 16, 2001

For More Information, Please Contact: Stacy Carey, scarey@isda.org

ISDA New York, Tel (212) 332-1200; Fax (212) 332-1212

 

2001 ISDA MARGIN PROVISIONS

STREAMLINE COLLATERAL PROCESS

 

NEW YORK, Wednesday, May 16, 2001 – The International Swaps and Derivatives Association (ISDA) announced today that it has published the 2001 ISDA Margin Provisions (Provisions), which update and simplify the four existing credit support documents in a single document. “The document is easy to understand and will reduce the barriers to entry for new derivatives market participants,” said Robert Pickel, ISDA’s Executive Director and CEO.

 

Parties using the Provisions can select jurisdiction-specific provisions to apply to their margin arrangements, under New York law, English law and Japanese law. The Provisions have common operational provisions, incorporate a plain English approach and offer more streamlined timing and dispute resolution procedures. A User’s Guide to the Provisions will be available later this year. 

 

David Maloy, Managing Director of Global Collateral and Margin at UBS Warburg and Co-Chair of the ISDA Collateral Committee, said, “The Provisions were a response to market disruptions in recent years and offer a mechanism to reduce credit exposure arising between the time of a trade and the time at which an institution can liquidate any available collateral.”

 

For those institutions wishing to amend their existing credit support annexes, rather than opting for the new Margin Provisions, forms of Amendment to the New York law and English law Credit Support Annexes will be available in June.  The forms of Amendment will mirror the operative sections of the Provisions with respect to transfer timing, dispute resolution and substitutions or exchange of margin.  The Provisions are available from ISDA’s web site (www.isda.org).