OTC Trade Capture and Trade Confirmation

Working Group Co-Chairs

Markus H. Ruetimann (2010 Status update)

Mandate

To draft best practice recommendations to improve the trade capture and trade confirmation process for segregated and pooled investment vehicles using OTC derivatives.

Background

The ISSA OTC Trade Capture and Trade Confirmation Working Group was launched as a successor to the ISSA OTC Derivatives Verification of Valuations WG which completed its work by publishing its final report in September 2008.

Initial Mandate

To develop minimum operating and data standards that would improve the efficiency in the trade capture and trade confirmation process for OTC derivatives transactions in key financial markets.

Progress

As part of gathering information and facts, the WG maintained a dialogue with various associations. It became clear that launching an ISSA initiative would duplicate industry-led efforts. ISSA therefore concluded that it would not seek to define operational solutions and/or standards as these are being worked on by associations like ISDA, SIFMA, ISITC and Managed Funds Association, to name a few.

The working group therefore endeavoured to provide ISSA members with updates on progress made by the above associations and encouraged all ISSA members to provide input to these debates, to ask questions and/or to raise any concerns.

ISSA OTC Derivatives Information Sharing Platform

Overview over existing initiatives

ISDA

ISDA’s governance structure recently introduced to cover the following seven key areas:

• Confirmation processing standards around submission / matching timeliness whilst maintaining accuracy and reducing the outstanding trade confirmations
• Trade reporting and transparency
• Central Life Cycle Event processing automation
• Cash flow reconciliation/calculation automation and central netting and settlement
• Central counterparty usage
• Portfolio compression
• Portfolio Reconciliation

2009-05: Governance structure for OTC Derivatives and brief definition about each group PDF 51 kB

Due to the lack of feedback received from the ISSA membership, the working group has in the meantime discontinued its work.