The International Swaps and Derivatives Association has abandoned its planned supplement on which forms of guarantee can be used under standard credit language. The move means the U.S. and European markets will trade using different contracts, the Japanese market will likely adopt the same wording as the Europeans, according to an e-mail obtained by DW.
The trade association, however, has decided to issue a less comprehensive proposal, which clarifies the legal issues and will be added to every contract regardless of which definition of guarantees traders elect.
