Letter from the Office of the Chief Accountant at the SEC

ISDA received confirmation that the SEC staff supports the view that the novation of a bilateral OTC derivative contract (that has been designated as an accounting hedge) to a clearing organization does not result in the termination of the original bilateral derivative contract and associated hedge relationship.

Documents (1) for Letter from the Office of the Chief Accountant at the SEC

Addressing Termination Troubles

When Enron announced a shock $618 million loss on October 16, 2001, it took a further 47 days until it filed for bankruptcy. For Bear Stearns, it took 266 days between its bailout of a structured credit fund run by...