ISDA Issues Reports on OTC Derivatives Collateral Management

March 29, 2010
The International Swaps and Derivatives Association, Inc. recently published two reports on the use of collateral in the over-the-counter derivatives markets: the Market Review of OTC Bilateral Collateralization Practices and the Independent Amount White Paper. The reports are designed to provide a better understanding of current market practice and include a number of recommendations for market participants to improve their collateral management processes. This update examines the reports and their implications for hedge funds, broker-dealers, and other financial institutions.