Video Interview: What’s Next for Derivatives Markets?

The coronavirus pandemic has had a far-ranging impact on the global economy and the financial system. Derivatives markets shifted gear when the crisis escalated during March and April, as banks focused critical resources on business continuity and the management of market volatility.

Now that regulatory relief has given firms the bandwidth they needed, ISDA’s CEO Scott O’Malia considers what happens next, and where the focus should be for the remainder of the year.

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...