NEWS RELEASE
For Immediate Release
ISDA Publishes ISDA 2013 Account Control Agreement (ACA)
NEW YORK, October 11, 2013 – The International Swaps and Derivatives Association, Inc. (ISDA) announced today the launch of the ISDA 2013 Account Control Agreement (ISDA ACA).
The ISDA ACA facilitates the negotiation process of contractual arrangements that provide for segregation of Independent Amounts (IA) with a third party custodian. Similar to other tri-party account control agreements, the ISDA ACA is a three-way contract between the custodian and two over-the-counter (OTC) derivatives counterparties and provides that the custodian will hold and release IA to the counterparties based on pre-defined conditions.
The ISDA ACA has a similar structure to the ISDA Master Agreement. It aims to streamline tri-party custodial negotiations by offering a standardized agreement with an accompanying annex containing suggested optional provisions that can be tailored as appropriate.
Risks associated with IA and the recent regulatory responses to this issue have given rise to more frequent requests for segregation of IA in recent years. The ISDA ACA was developed by the ISDA Segregated IA Working Group (which includes swap dealers, buy-side firms and custodian firms) in response to new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States. The ACA is available on the Collateral section of ISDA’s website.
For Media Enquiries, Please Contact:
Lauren Dobbs, ISDA New York, +1 212 901 6019, ldobbs@isda.org
Rose Millburn, ISDA London, +44 203 088 3526, rmillburn@isda.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
About ISDA
Since 1985, ISDA has worked to make the global over-the-counter (OTC) derivatives markets safer and more efficient. Today, ISDA has over 800 member institutions from 60 countries. These members include a broad range of OTC derivatives market participants including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure including exchanges, clearinghouses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s web site: www.isda.org.
ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc.
Documents (1) for ISDA Publishes ISDA 2013 Account Control Agreement (ACA)
Latest
Response on Dividend Stripping
On October 14, ISDA, the Association for Financial Markets in Europe (AFME) and the International Securities Lending Association (ISLA) submitted a joint response to the Dutch Ministry of Finance on its proposed measures on dividend stripping. While supporting the policy...
ISDA Launches DRR Tracer Agent
ISDA has launched an artificial intelligence (AI) agent for its Digital Regulatory Reporting (DRR) solution that will bring greater transparency to users by tracing the rules and decisions that have guided the development of the DRR. The ISDA DRR Tracer...
US FX Derivatives Review
ISDA has expanded its SwapsInfo website to include data on US foreign exchange (FX) derivatives, extending the platform's coverage beyond interest rate and credit derivatives to a third over-the-counter derivatives asset class. The US FX Derivatives Review covers trading activity...
Response to FCA on Post-trade Transparency
On October 16, ISDA responded to the Financial Conduct Authority’s (FCA) consultation CP26/30. While the consultation is principally focused on cash equity market structure and transparency, ISDA responded to questions on the potential inclusion of equity swaps in the scope...
