The International Swaps and Derivatives Association is considering setting up a securitized derivatives forum, which would deal with a variety of issues surrounding structured listed derivatives. The trade association is due to discuss the plan at its board meeting on July 15.
Tim Hailes, assistant general counsel at JPMorgan in London, said securitized derivatives currently fall between two stools, the primary market Eurobond trade groups and ISDA, which has traditionally focused on the over-the-counter derivatives market. Because OTC derivatives have a direct impact on securitized derivatives, because dealers hedge the listed products in the OTC market, noted Hailes. "Most of the terms and conditions of a securitized derivative are ISDA driven," he explained.