One of the hallmarks of the digital age is the replacement of clunky manual processes with innovative new technologies. Smartphones, streaming services and online communication have enabled advances and efficiencies that could barely have been imagined when there was no alternative to fixed landlines, DVDs and the postal service.

A similar transformation is taking hold across many critical processes in the derivatives market. From the negotiation of documentation to the reporting of trade details, digital solutions are creating efficiencies, reducing risk and cutting costs. This edition of IQ shines a light on ISDA’s new digital transformation function, which has been established to align its mutualized products and services, advance and innovate both new and existing solutions, and drive adoption.

The ISDA solutions are wide ranging and span legal, risk and data. All these products will now be maintained by ISDA’s digital transformation team, which has been structured with the resources to ensure it has the firepower to succeed, as chief executive Scott O’Malia explains in this issue.

One of the defining features of the digital strategy is a commitment to further advance existing solutions while testing and developing innovative new concepts to meet the demands of market participants. During the second half of 2023, ISDA has been active on both fronts. The recent integration of the ISDA Create document negotiation platform with S&P Global Market Intelligence’s Counterparty Manager application takes ISDA Create to the next level and will ultimately enable users to access a complete digital record of all relationship and contractual data entered on either platform.

ISDA is also engaging closely with market participants to explore a possible digital solution to an age-old problem – the physical delivery of critical termination-related notices to counterparties. Recent experiences have underscored the problems that can arise when such notices are delayed or delivered to the wrong address. The ISDA Notices Hub, which could launch in 2024, would address this problem by enabling the immediate electronic delivery of notices via a central industry platform.

Check out our new Solutions InfoHub on the ISDA home page for more details.

Documents (1) for Digital Transformation – IQ December 2023