The International Swaps and Derivatives Association expects to publish its best practice statement for CDX master confirmations on credit derivative indices within a month. The comment period on the draft document closed last week and due to minimal requests for change the trade association doesn't see any cause for delay.
Karel Engelen, a policy director with ISDA in New York, said the index consortium of 16 banks is seeking to offer general guidelines to players in the index market, particularly in regards to operations. One of the largest issues surrounds switching counterparties, according to Engelen. He said comments were few and described the recommended changes as minor. Now a committee, headed by Engelen and comprised of ISDA's credit derivatives market practice group and the operational working group for credit derivatives, will make any necessary changes.
