ISDA publishes protocol for swap reporting compliance

The International Swaps and Derivatives Association has launched a reporting protocol aimed at helping market participants comply with mandatory trade reporting rules.

By None

The International Swaps and Derivatives Association (ISDA) has launched a reporting protocol aimed at helping market participants comply with mandatory trade reporting rules.

Under the US Dodd-Frank Act, standardised OTC derivatives trades must be cleared through central counterparties and reported to a swap trade repository (STRs). The data is then passed on to regulators as part of an attempt to reduce systematic risk in the market. Reporting is also being introduced in all other Group of 20 financial markets.

ISDA yesterday released a reporting protocol, a contractual agreement for swap traders to consent to the disclosure of their trade data to STRs. The protocol is open to all participants, though it may be particularly helpful for traders in jurisdictions where consent may be necessary to pass on trade details. 

Traders agreeing to the reporting protocol will be named on the ISDA website. Participants who choose not to be publicly identified could submit a Side Letter, which has the same language as the protocol but can be sent to dealers bilaterally. 

"We are committed to making markets safer and more efficient, and the ISDA 2013 Reporting Protocol and Side Letters are among the many tools that ISDA is making available to help market participants meet their trade reporting obligations," Robert Pickel, ISDA CEO, said.

The protocol will be open until ISDA designates a closing date, and is open to ISDA members and non-members.

ISDA already has protocols in place for Dodd-Frank, but the latest protocol address reporting disclosure specifically. The association is also looking at publishing one for European market infrastructure regulation requirements. 

«