Swaps Committee Creates Standardized Interest-Rate Contract
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Users of over-the-counter derivatives may now use an interest-rate swap contract with preset terms as the industry lobby group seeks to standardize the $379 trillion market.
The contract, which the International Swaps and Derivatives Association developed with the Securities Industry and Financial Markets Association, has pre-agreed terms including on coupons and payment dates, according to a press release distributed today at ISDA’s annual general meeting in Singapore. It will initially be available in six currencies and at nine maturity points from one to 30 years.