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March 20, 2006 at 07:00 PM
SINGAPORE (HedgeWorld.com)–The International Swaps and Derivatives Association released the results of a survey on credit derivatives post-trade processing–and the survey’s numbers indicate that such processing is improving.
For large firms (those that conduct at least 1,500 swap trades a week) backlogs have decreased over the last year from 23.5 days to 16.2 days, despite a doubling in the number of those firms’ swaps during the same time.
Another measure of effective processing is the percentage of counterparties who confirm a trade within one day after the trade date (T + 1). A year ago, only 33% of the survey’s respondents sent their confirmations T + 1, and only 50% by T + 2. But now, the same percentages are 53% and 67% respectively.
The processing survey was only one of five announcements from ISDA timed to coincide with its 21st annual meeting, held in Singapore. The others:
oUse of collateral in privately negotiated derivatives transactions and related margined activities continues to grow significantly, with the amount of
collateral in circulation now estimated at $1.439 trillion;
oISDA has published 2006 fund derivatives definitions, intended for use in confirmations of derivatives transactions linked to interests in various types of
