INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.
NEWS
RELEASE
For
Immediate Release Friday, May 4, 2007
For More Information, Please Contact:
Scott Marra, ISDA New York, 212-901-6013, smarra@isda.org
ISDA Publishes 2007 Property Index Derivatives
Definitions
Working
with its members, ISDA has developed these definitions to assist the smooth and
efficient functioning of the property index derivatives market by providing a
common set of terms for parties to use in documenting such transactions.
“The ISDA 2007 Property Index Derivatives
Definitions will increase efficiency, reduce legal risk and improve liquidity
in a relatively small but rapidly growing segment of the privately negotiated derivatives
business,” said Robert Pickel, Executive Director and Chief Executive
Officer, ISDA. “We expect that
this will facilitate the continued development of the property derivatives
business, just as our legal and documentation work has in a range of other
derivatives asset classes.”
In conjunction with the release of the Definitions,
ISDA also published new confirmation forms for common types of property index
derivatives transactions, including total return swaps and forwards. An options
confirmation template will be developed over the summer.
An Annex to the Definitions contains Index
Descriptions. It is anticipated that Index Descriptions will be added or
changed from time to time as transactions involving property indices not
included in the Definitions become more prevalent and to reflect market
practice. Currently, indices in North America and
The 2007 ISDA Property Index Derivatives
Definitions and Confirmation templates are available at ISDA’s
website: www.isda.org.
About ISDA
ISDA, which represents participants in the
privately negotiated derivatives industry, is among the world’s largest global
financial trade associations as measured by number of member firms. ISDA was chartered
in 1985, and today has approximately 780 member institutions from 54 countries
on six continents. These members include most of the world's major institutions
that deal in privately negotiated derivatives, as well as many of the
businesses, governmental entities and other end users that rely on
over-the-counter derivatives to manage efficiently the financial market risks
inherent in their core economic activities. Information about ISDA and its
activities is available on the Association's web site: www.isda.org.