1. Infrastructure
  2. Trading
  3. Asia Pacific Collateralized Portfolio Reconciliation Memorandum of Understanding (MoU)

Asia Pacific Collateralized Portfolio Reconciliation Memorandum of Understanding (MoU)

Infrastructure
Trading January 3, 2011
< 1  min.read

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

Response to CPMI-IOSCO on Consultation

On February 5, ISDA and FIA responded to the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) consultation on the management of general business risks and general business losses by financial market infrastructures (FMIs)....