Friday January 30 2015
News Source: Global Exchanges
Focus: Credit Rating
Type: General
Country: International
The International Organization of Securities Commissions (ISOCO) published its final report of Risk Mitigation Standards for Non-centrally Cleared OTC derivatives markets. This report sets out nine standards which focus on mitigating the risks in non-centrally cleared OTC derivatives markets.
Risk mitigation standards have been developed by ISOCO and the Basel Committee on Banking Supervision (BCBS) following the initial framework governing the minimum standard on margin requirements for non-centrally cleared OTC derivatives, which was published in 2013.
The risk mitigation standards focus on the following areas:
- Trading relationship documentation and trade confirmation
- Process and/or methodology for determining valuation
- Portfolio reconciliation
- Portfolio compression
- Dispute resolution
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