TheInternational Swaps and Derivatives Association has delayed the publication of its novation protocol, which officials had expected this week. Reasons for the delay could not be ascertained by press time. Louise Marshall, spokeswoman for ISDA in New York, confirmed the protocol will be due out later this summer, declining further comment.
Dealers are hoping the voluntary agreement will alleviate regulatory pressure on over-the-counter markets (DW, 7/22). "It addresses the concerns that the regulators and public have had," said one official close to the drafting process.
The protocol will pave the way for a change to verbal agreements from written ones. "It's a multilateral agreement that will, in effect, bring legal requirements closer to market practice," added the official.
