The International Swaps and Derivatives Association's equity derivatives market practice committee has set up a documentation group in London. The group will primarily discuss standard terms for equity derivatives referenced to mutual and hedge funds, but will also look at other exotic derivatives, such as equity-default swaps, according to Onno Vriesman, European chair of the equity derivatives committee and head of structured products origination at Deutsche Bank in London.
Vriesman said rather than attempt to reinvent the wheel JPMorgan has put forward its templates for these derivatives to form the basis of a discussion. He said this is useful because, "If you give two lawyers a term sheet you will come out with two different documents." Vriesman expects the group to come up with a draft template for hedge funds in the coming months.