Seeking to curtail the credit crunch and prevent such events in the future, the President's Working Group on Financial Markets (PWG) has recommended improving the processing of over-the-counter derivatives. In response, trade groups and infrastructures are ramping up efforts to advance automation.
The Securities Industry & Financial Markets Association (Sifma) is working with its dealer and buy-side members to make electronic novations occur in real time and to further automate collateral management. The Depository Trust & Clearing Corp. (DTCC) plans to funnel more types of OTC derivatives into its DerivServ processing platform. And the International Swaps & Derivatives Association (ISDA) is considering fully standardizing documentation and protocols for its cash-settlement auction process used for payouts on credit default swaps (CDS) triggered by credit events.
|
