To simplify how over-the-counter derivatives are valued, ISDA is working to standardize collateral arrangements between entities trading such swaps. The agreements are highly flexible, but that has led to issues. "ISDA will continue to lead standardization initiatives in an effort to make global derivatives markets safer and more efficient," said CEO Conrad Voldstad. "The standard [credit-support annex] is the next step towards simplifying and standardizing market processes regarding collateralization." Read ISDA's news release for more details.
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