As policymakers in emerging and frontier markets consider the regulatory framework for financial markets in their jurisdictions, the need for customized risk management tools by market participants remains important.
Market participants use over-the-counter (OTC) derivatives because they are able to customize the terms of their contracts to align more precisely with their specific hedging needs.
With the expansion of central clearing for OTC derivatives, there is a perception that cleared IRD transactions have become standardized, like interest rate futures.
Using data from the Depository Trust & Clearing Corporation, this paper examines the population of cleared fixed-for-floating IRS and demonstrates that cleared products remain highly customizable as compared to futures contracts, enabling buyers and sellers to agree on bespoke terms to better manage the risks to which they are exposed in the normal course of their business operations.
Click on the attached PDF to read the full report.
Documents (1) for Interest Rate Swaps: Cleared and Customized
Latest
ISDA Comments on Executive Order 14219
On October 23, ISDA’s North American Tax Working Group (NATWG) submitted comments in response to the US Department of the Treasury and Internal Revenue Service statement regarding taxpayer recommendations on regulations identified under Executive Order 14219, ensuring lawful governance and...
ISDA ALF: Katherine Tew Darras Opening Remarks
ISDA Annual Legal Forum New York, October 28, 2025 Opening Remarks Katherine Tew Darras ISDA General Counsel Good morning and welcome to the Annual Legal Forum here in New York. Thank you for joining us today and thanks to...
ISDA 2025 – 2002 Equity Derivatives Definitions (Versionable Edition) Protocol Opens for General Adherence
ISDA has opened the general adherence phase for the ISDA 2025 – 2002 Equity Derivatives Definitions (Versionable Edition) Protocol. The protocol enables adherents to amend the terms of their equity derivatives master confirmation agreements to incorporate the 2002 ISDA Equity...
ISDA Comment on ICC Application as Clearing Agency
On October 6 ISDA submitted a comment letter to the Securities and Exchange Commission in response to the ICE Clear Credit (“ICC”) application for registration as a clearing agency under Section 17A of the Securities Exchange Act of 1934, including...