The purpose of the ISDA OTC Derivatives Interest Compensation Claims Suggested Operational Practices (SOP) is to outline the guidelines for the submission and processing of interest compensation claims arising from payments relating to OTC Derivatives transactions confirmed under the terms of the 2002 ISDA Master Agreement (or the 1992 ISDA Master Agreement).
The SOP describe the industry suggested guidelines for compensation and claims arising out of failed settlement of coupon and fee payments on OTC derivative transactions. For claims arising out of parties’ failure to meet their obligations with respect to the movement of collateral (cash or securities), please refer to the 2021 Suggested Operational Practices for the OTC Derivatives Collateral Process.
The SOP address the procedure firms may follow to initiate, submit and process compensation claims. This document also provides an overview of certain factors that a party may wish to consider when determining the amount of a claim. However, this document does not (nor does it intend to) prescribe or provide guidance on how the compensation rate or the value of any claim may be determined.
This document is an update to the OTC Derivatives Interest Compensation Claims Best Practice guidelines that were published by ISDA on October 26th, 2010.
Documents (1) for ISDA OTC Derivatives Interest Compensation Claims Suggested Operational Practices
Latest
Response to EC on Market Risk Prudential Framework
On January 6, ISDA, the Association for Financial Markets in Europe (AFME) and the Institute of International Finance (IIF) submitted a joint response to the European Commission’s (EC) targeted consultation on the application of the market risk prudential framework. ISDA,...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
Response on CCP Participation Requirements
On December 24, ISDA responded to a consultation from the European Securities and Markets Authority (ESMA) on central counterparty (CCP) participation requirements. Participation requirements for CCPs are vital for safe and efficient clearing markets, and ISDA broadly supports ESMA’s consultation...
U.S. Federal Holidays on December 24 and 26, 2025
Pursuant to an Executive Order of the President of the United States, December 24 and December 26 have been designated as federal holidays for U.S. federal government purposes. The designation of such dates as U.S. federal holidays is not expected to affect...