ISDA Publishes Digital Asset Derivatives Definitions

The International Swaps and Derivatives Association, Inc. (ISDA) has published new documents pertaining to the trading of digital asset derivatives, along with a whitepaper addressing legal issues raised by the recent bankruptcies of major crypto exchanges and crypto market participants (e.g, Three Arrows Capital, Celsius and Genesis). The recent publication of the ISDA Digital Asset Derivatives Definitions (the Definitions) and the whitepaper is a significant development for Canadian digital asset market participants, and will be welcomed by those who trade in digital asset derivatives. The Definitions and whitepaper seek to standardize derivatives trading documentation and contribute to efforts to clarify the close-out netting and collateral treatment of digital assets.