The well-publicized property index swap between Eurohypo and a financial institution in the U.K. (DW, 1/21) has brought property derivatives to the trade association's attention. Barry Taylor Brill, senior v.p. and deputy general counsel at Wachovia said, "This is looking like another job for ISDA." Lawyers said new markets eventually require ISDA standards documentation.
Taylor Brill noted property derivatives have been used before the Eurohypo trade in index-linked certificates issued by Barclays Capital. The size and interest in the U.K. housing market shows there could be support for a derivatives market, he added.
