ISDA Guidelines Address Challenges To The Development Of Smart Derivatives Contracts

In "Legal Guidelines for Smart Derivatives Contracts: Equities" - ISDA argued that lack of automation presents challenges to streamlining operational processes within the equity derivatives market. The new guidelines are intended to "provide an introduction to equity derivatives for readers who are designing and implementing technology solutions for these products."

ISDA asserted that automation helps to:

• reduce complexity and offer "greater opportunities" for fundamental business transformation;
• improve cost-efficiency by reducing employees' time devoted to collecting and processing data;
• increase revenue growth; and
• mitigate operational risk by reducing errors in the way transactions are processed.