ISDA has published the fourth in a series of legal guidelines for smart derivatives contracts, intended to support technology developers, lawyers and other key stakeholders in the development of smart derivatives contracts in the equity derivatives market.
This paper:
- Provides an overview of equity derivatives transactions and the different product types;
- Explains how equity derivatives transactions are documented under both the 2002 and 2011 ISDA Equity Definitions; and
- Explores how smart derivatives contracts might be constructed and delivered within the framework created by the 2011 ISDA Equity Definitions.
While the intention of this paper is not to specify or recommend any particular technological application or project, it does provide recommendations on steps that the industry should now take to further standardize and digitize equity derivatives documentation with a view to achieving greater automation of the equity derivatives market. This paper also provides information on how members can contribute to this work.
Click on the attached PDF to read the paper.
You can access all of ISDA’s papers on smart contracts here.
Documents (1) for Legal Guidelines for Smart Derivatives Contracts: Equities
Latest
Joint Response on RBA Consultation
On August 11, ISDA and FIA submitted a joint response to the Reserve Bank of Australia (RBA) on its consultation on guidance for Australia’s clearing and settlement facility resolution regime. The associations welcome publication of the draft guidance, which provides...
SwapsInfo H1 2025 and Q2 2025
Interest rate derivatives (IRD) trading activity increased in the first half of 2025, driven by continued interest rate volatility, evolving central bank policy expectations and persistent macroeconomic uncertainty. Trading in index credit derivatives also rose, as market participants responded to...
ISDA Response to IFSCA Consultation
On August 5, ISDA responded to the International Financial Services Centres Authority’s (IFSCA) consultation on reporting and clearing of over-the-counter (OTC) derivatives contracts booked in International Financial Services Centres (IFSC). In the response, ISDA provided the following recommendations: Not mandating...
ISDA Response to BIS on Tokenization
On July 30, ISDA submitted a response to a Bank for International Settlements (BIS) consultation on leveraging tokenization for payments and financial transactions. In the response, ISDA focused on the legal, regulatory and documentation issues relevant to the derivatives market,...