As the derivatives market grows, OTC collateral agreement such as CSA (Credit Support Annex) is widely used to manage credit risks, however the efficiencies of CSA implementation may be compromised by the mismatches lied in the system records between the 2 parties. Portfolio reconciliation was established as a process to verify the accuracy of a firm’s trade population using live system data by comparing the two counterparty’s records of a bi-lateral OTC portfolio as of a given business date.
The industry would like to promote regular portfolio reconciliation in the Asia Pacific region. Under the auspice of ISDA Collateral Steering Committee, ISDA Asia Pacific Collateral Management Operations Working Group launched an initiative to draft a Memorandum of Understanding of Portfolio Reconciliation, the document is published on January 3, 2011. Firms with business in the Asia Pacific region are encouraged to adhere to the MoU.
Documents (3) for Asia Pacific Collateralized Portfolio Reconciliation Memorandum of Understanding (MoU)
Latest
Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...
ISDA Response on Hedge Accounting Guidance
On August 14, ISDA responded to an exposure draft from the Financial Accounting Standards Board (FASB). ISDA broadly supports the FASB’s proposed targeted improvements to hedge accounting, including allowing interest rate hedging of held-to-maturity (HTM) debt securities, recognizing all Secured...
Joint Response to EBA Consultation
On August 12, ISDA and the Association for Financial Markets in Europe (AFME) responded to the European Banking Authority’s discussion paper on certain taxonomy key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of...
Response to JSCC on Clearing Fund Consolidation
On August 12, ISDA responded to the Japan Securities Clearing Corporation’s (JSCC) consultation on its proposal to consolidate clearing fund consumption, calculation and deposit segmentation across six clearing qualifications under the Financial Instruments and Exchange Act. ISDA members broadly support...