ISDA asks FX market whether definitions and docs should change
New entrants into the FX market raise the challenge for the body responsible for rules governing FX derivatives, as it mulls the possibility of future updates to how these products are documented and traded.
The International Swaps and Derivatives Association (ISDA) launched a market participant survey in April to gather feedback on whether the 1998 FX and currency option definitions and related documentation should be updated.
It took into account developments in the FX market such as currencies becoming non-deliverable and the general evolution of foreign-exchange trading during the past 25 years.
According to an ISDA spokesperson, the survey was designed to garner market feedback on whether changes to the FX definitions are necessary and, if so, where there was market consensus for change.
“The survey sets out a number of possible areas for change, but this process is at a very early stage and there are no specific plans to implement any particular amendment,” he adds. “The whole point of the survey is to get feedback on a variety of options before any decisions are made – and as with any ISDA initiative, we will only move forward with any modifications if there is significant support for doing so.”