Video – How is Collateral Used in the Derivatives Market?

Collateral acts as a backstop that protects market participants and the economy as a whole. The requirement to post collateral is a key reform that makes the derivatives market more transparent, resilient and safe.

ISDA’s new whiteboard animation video explains how collateral is used in the derivatives market, and how it makes the financial system safer.

These are also available on ISDA’s Facebook page.

Tags:

,

Remove Bureaucracy from Cross-margin Approvals

Cross-margining programs play a critical role in financial markets. By ensuring margin requirements more closely reflect the actual risk of a portfolio of products, they reduce liquidity strain and improve market efficiency, both of which will become even more important...

Joint Response on CCP Resolution

On September 7, ISDA and FIA responded to a Bank of England (BOE) discussion paper on central counterparty (CCP) resolution. The associations support greater clarity on valuation capabilities prior to a crisis scenario and the boundary between recovery and resolution,...