The International Swaps and Derivatives Association may have a loan credit default swap confirm document ready as soon as May 12. Kimberly Summe, general counsel, said the group is optimistic that something could be ready by that week or the following, but could be pushed off if something "earth shattering" was brought to the association's attention before then. Elliot Ganz, executive v.p. and general counsel of the Loan Syndications and Trading Association, said the physical settlement rider the LSTA is publishing to go with the ISDA confirm is in good shape and should be ready when ISDA's document is ready.
ISDA held a call last Wednesday to elicit a final round of feedback from members. The association had sent around a draft of the confirm and the rider with a list of questions members had on April 21. During the April 26 call, members of the working committee that put together the document answered questions from members. Specific questions dealt with nonpublic information and cash vs. physical settlement procedures. ISDA is allowing members one last round of feedback, which is due this Wednesday.
Summe said that once ISDA has a U.S. document in place, it will turn its attention to a European form. An ad hoc committee has been putting together a document in Europe, much like the process in the U.S., and ISDA will go through a similar process in publishing a confirm for that market.