The International Swaps and Derivatives Association, Inc. (ISDA) has today announced that ICE Benchmark Administration (IBA) will assume the secretarial role on the credit derivatives Determinations Committees (DCs).
IBA was chosen following a seven-month selection process that began with a public invitation to tender in May. As DC secretary, IBA will be responsible for administrative duties, such as passing questions submitted by eligible market participants to the relevant DCs, coordinating the timing of DC meetings, organizing and compiling the votes of DC members, and publishing DC decisions. The DC secretary does not vote on whether credit events have occurred.
The selection of IBA as DC secretary is part of an ongoing initiative to strengthen the DC process and ensure it continues to align with evolving governance standards.
“The ISDA selection committee felt IBA has the necessary skills and expertise to support and develop the DC process and help ensure the long-term viability of the credit derivatives market. We will work closely with IBA in the coming months to ensure a smooth and orderly transition of the DC secretary responsibilities,” said Scott O’Malia, ISDA’s Chief Executive.
As well as its administrative responsibilities, IBA will develop a new DC website, introduce and maintain infrastructure required to administer the DC process, and work with the DCs and the wider industry to ensure the process is robust, transparent and meets evolving regulatory standards.
The transition is expected to take approximately six months. ISDA will continue to maintain and publish the standardized documentation used as a basis for credit derivatives transactions, such as the 2003 and 2014 ISDA Credit Derivatives Definitions.
The appointment of a new DC secretary is part of a continuing initiative to ensure the DC process continues to meet best practices in governance, conduct and transparency. Earlier this year, ISDA announced that the DCs had voted to make a series of changes to the DC rules, including revisions that require DC firms to confirm they have written policies or procedures in place to identify and manage conflicts of interest arising from participation in the DCs.
