The International Swaps and Derivatives Association is in the early stages of forming a steering committee for the development of a standard weather derivatives confirmation, according to Ross McIntyre, director, weather risk at Deutsche Bank in London. He added that Deutsche Bank wants to be actively involved in the process because the market needs to have one standard to make it more efficient.
McIntyre explained that a standard confirm would be beneficial to the market, in the same way that the formation of a standard interest-rate swap contract facilitated that market's growth. An official at Royal Bank of Canada agreed, and said he would like to see a standard confirm because it would make the market more efficient. "Documentation has always been a contentious issue," he said. Officials at ISDA did not return calls.