Excerpt: In this environment some hedge funds have found they are more exposed to the risk of bank failure because they agreed to trading terms that did not require banks to post collateral against certain derivatives trades, according to Lauren Teigland-Hunt, managing partner at law firm Teigland-Hunt LLP.
“Taming Credit Derivatives: Assessing the Private Sector Response to Regulatory Concerns” – MFA ReporterNov 01, 2006
Excerpt: The private sector initiatives that have been launched in response to issues raised by regulators over the last year are changing the way the credit derivatives markets operate and are giving these markets a vital and timely face lift. Specifically, these undertakings have led to the development of standard procedures for transferring (or “novating”) credit derivative trades in reliance on a “Novation Protocol” published by the International Swaps and Derivatives Association, Inc. (ISDA)
Masters, Annexes and Bridges (Oh My!): A Primer on U.S. Energy Trading Documentation – The University of Texas School of Law – 5th Annual Gas & Power InstituteOct 01, 2006
Excerpt: The growth of the over-the-counter energy markets can be attributed in no small part to the development of standardized documentation for physical energy trading. These documents not only provide market participants with sophisticated tools for documenting and tailoring transactions to their needs but also have led to greater market liquidity by ensuring that products are traded on consistent terms, thereby enhancing fungibility.