The International Swaps and Derivatives Association, Inc. (ISDA) today announced that it has published a set of recommended common principles intended to guide documentation for give-up agreements across central counterparties (CCPs) or clearing houses.
These principles are the product of an ISDA-led working group comprising buy- and sell-side participants and CCPs. The group has worked to promote industry-wide dialogue and coordinated solutions to facilitate buy-side access to clearing by December 15.
“Our active involvement in helping generate access to clearing demonstrates that ISDA remains committed to enhancing processing for privately negotiated derivatives,” said Robert Pickel, executive director and chief executive officer, ISDA. “As we move ahead, ISDA will continue to lead the industry’s efforts to increase access to central clearing of CDS.”
The principles address the following areas: fallbacks in the event of rejection for clearing, ability to reject trades, reduction of trading limits, and determinations of market decisional bodies in relation to CCPs.
The principles are available on ISDA’s website: www.isda.org.
