ISDA recommends greater standardization in derivatives market infrastructures. The International Swaps and Derivatives Association published a white paper that contains several recommendations for using greater standardization and automation to improve efficiency in the derivatives trade processes including the implementation of additional standardization in documentation, data, and processes; the development of smart contracts to automatically execute intended lifecycle events; and the adoption of a standard, multi-use derivatives product identifier. (9/15/2016) ISDA press release.
Basel Committee releases Basel III monitoring results. The Basel Committee on Banking Supervision released the results of the most recent Basel III monitoring exercise. Among other things, the monitoring report found that all large internationally active banks met Basel III risk-based capital minimum CET1 requirements, more than three quarters of banks met or exceeded 100% LCR, and nearly all banks reported an NSFR at or above 90%. (9/13/2016) BIS press release.
Academic review shows benefits of single-name CDS. ISDA published a paper that reviews the academic literature on the benefits and costs of single-name credit default swaps. The paper showed that the single-name CDS market has a positive impact on the supply of credit to many reference entities underlying traded CDS, lowers the borrowing costs for some corporate and sovereign reference entities, and provides useful information about the likelihood of future adverse credit events. (9/12/2016) ISDA press release.
ISDA publishes ISDA 2016 China Collateral Memorandum. ISDA issued a memorandum that contains information on the legal issues surrounding the exchange of collateral with a counterparty in China and examines the enforceability of collateral rights contained in ISDA credit support documentation under Chinese law. (9/7/2016) ISDA press release.