March 2011, the International Swaps and Derivatives Association (ISDA) Commodities Steering Committee (COSC) and Commodities Major Dealers Implementation Group (CMD) made a commitment to global supervisors to continue to drive a high level of product, processing and legal standardization, with a goal of securing further operational efficiency, mitigating operational risk and increasing the netting and clearing potential for appropriate products. This whitepaper (the Paper) analyzes existing and, where appropriate, potential opportunities for further standardization in the over-the-counter (OTC) commodity derivatives market. Additionally, the Paper includes a summary of key commodities’ trade processing lifecycle events, aligned, where appropriate, with established industry programs concerning metrics, documentation and electronic processing.
Listed trades and cleared OTC trades have been specifically excluded from the scope of this Paper due to the high degree of automation inherent in the processing of such trade types.
Documents (1) for OTC Commodity Derivatives Trade Processing Lifecycle Events
Latest
Response to FCA on CFI Codes for Transparency
On March 19, ISDA responded to Chapter 3 of the UK Financial Conduct Authority’s (FCA) Quarterly Consultation CP26/8 on transparency requirements for financial instruments under Market Conduct Sourcebook (MAR) 11. Sections 3.11-3.13 of the consultation paper explain a discrepancy between...
Why We Need Safe and Efficient SFT Markets
Securities financing transactions (SFTs) play a vital role in fostering liquidity, mobilizing collateral and supporting the smooth functioning of derivatives markets. But during periods of stress, secured funding markets often come under pressure just when they’re needed most, with reduced...
Response to BoE on Clearing Exemption for PTRR
On March 11, ISDA submitted a response to the Bank of England’s consultation on a proposed approach to exempting post-trade risk reduction (PTRR) transactions from the derivatives clearing obligation under Article 4 of the European Market Infrastructure Regulation (EMIR). ISDA...
IQ Interview with David Bailey
The Bank of England’s Prudential Regulation Authority recently finalized its Basel 3.1 framework for implementation at the start of 2027. David Bailey, executive director for prudential policy, talks to IQ about the importance of global consistency and the need to...