Participants in the Australian over-the-counter
(OTC) derivatives markets should consider
reviewing their OTC derivatives documentation, following the
release earlier today of the FIA-ISDA
Addendum for Cleared Derivatives Transactions by the
International Swaps and Derivatives Association, Inc.
(ISDA) and the US Futures Industry Association
(FIA).
The Addendum is designed to document the relationship between a
clearing member and its customer for the purposes of clearing OTC
derivatives transactions, where the clearing member is a registered
futures commission merchant under US law.
The publication is in anticipation of a substantial increase in
clearing volumes for OTC derivatives transactions, as rules made
under the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) come into force requiring OTC
derivatives to be cleared through central counterparties
(CCPs).
