ISDA appoints Linklaters to lead review of Credit Derivatives DC process

Linklaters has been appointed by The International Swaps and Derivatives Association Inc. (ISDA), as part of its review of the structure and governance of the Credit Derivatives Determinations Committees (DCs), to conduct an independent assessment and recommend any changes to maintain the integrity of the DCs in changing economic and market conditions.

The purpose of the report is to identify market views about changes that could be made to improve the governance and structure of the DCs. Once complete, the report will be published on ISDA’s website and opened to a market-wide consultation to determine whether the proposed changes have broad support from market participants and other stakeholders. ISDA will then work with members to develop specific solutions based on the supported conclusions to recommend to the DCs to implement.

The Linklaters team is being led by partner Simon Firth.

Simon Firth, commented:

“Given the key role of the Credit Derivatives Determinations Committees and the time that has passed since the structure was put in place it seems an appropriate time to review the determinations process. We look forward to conducting our independent review and sharing our recommended changes with the market.”

The process for developing the report will involve interviews with market participants and other stakeholders, such as regulators and clearing houses, to determine what steps might be taken to improve the functioning of the DCs. The review will begin in December 2023, with the market-wide consultation expected later in 2024.