Featured Product

    ISDA Guide on Collateral Management Under Smart Derivatives Contracts

    September 12, 2019

    ISDA published the third in a series of legal guidelines for smart derivatives contracts. This guideline is intended to explain the core principles of ISDA collateral documentation and raise awareness—among technology developers, collateral operations, risk managers, and other key stakeholders—about important legal and regulatory issues that must be considered when a technology solution is applied to the collateral management process.

    This paper provides guidelines to help the development and application of technology in the automation of collateral management. The paper is not intended to specify or recommend any particular approach or to address any particular technological application or project. The guidelines in this paper suggest steps that should be taken to ensure that the design and implementation of new technology solutions are consistent with the existing legal and regulatory standards. The paper also highlights areas for which further industry collaboration will be required to identify and resolve the existing areas of legal and regulatory uncertainty. Specifically, the paper describes:

    • Current challenges that exist in the collateral management process and how they can be resolved through greater automation
    • The importance of increased standardization in creating the foundation for automated technology solutions
    • The ISDA strategy for developing and delivering greater standardization and digitization of ISDA collateral documentation
    • Existing legal standards as set out in the ISDA collateral documentation and the key points for technology developers to consider as they develop and implement new technology solutions within this legal and regulatory framework

     

    Related Links

    Keywords: International, Banking, Securities, Smart Contracts, Derivatives Contracts, Regtech, Guideline, Distributed Ledger Technology, Artificial Intelligence, Automation, Fintech, ISDA

    Related Articles
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7291