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
Safe, Efficient Markets for SFTs
Securities financing transactions (SFTs) – including repurchase agreements (repo), securities lending, buy/sell backs and margin lending – are foundational to the functioning of modern financial markets. They support the day-to-day distribution of liquidity, enable collateral to move efficiently across cash...
ISDA, GFXD, UK Finance, LMA Respond to HMT on UK BMR Reform
On March 11, ISDA, the Global Foreign Exchange Division of the Global Financial Markets Association, UK Finance and the Loan Market Association responded jointly to a consultation from His Majesty’s Treasury on the future regulatory regime for benchmarks and benchmark...
ISDA Recommendations to Simplify EU Regulation
On March 9, ISDA submitted a paper to the European Commission setting out focused proposals to improve the functioning of the EU regulatory framework for derivatives. The paper comprises eight targeted recommendations to simplify selected Level 1 provisions in a...
New Selection Process for Standard Reference Obligations (SROs) FAQs
This Frequently Asked Questions (“FAQ”) document gives information about the new selection process for Standard Reference Obligations (SROs). Note that ISDA may update these FAQs on occasion. Please check back periodically for new versions.