El Rol de ISDA (International Swaps and Derivatives Association) en la regulación de los contratos de derivados OTC. Ligia Catherine Arias Barrera PhD Candidate- University of Warwick Impacto de la Regulación Privada Transnacional Unidad Latinoamericana, 3ª Reunión Anual Universidad Externado de Colombia   Agosto 15, 2013

Estructura Parte 1: Generalidades- Generalities Derivados Financieros- Financial Derivatives Estructura del Mercado- Market Structure Importancia del Mercado- Relevance of the Market

Estructura Part 2: El problema- The issue Reguladores Formales- Formal Regulators ‘Regulador Informal’: rol de ISDA Private Law Integration

Generalidades Definición ‘A financial instrument whose value is derived from the performance of an underlying asset`1 1. Alastair Hudson, Credit Derivatives: law, regulation and accounting issues (Sweet and Maxwell, 1999) 63

Regulated and Supervised Estructura de Mercado EXCHANGES Standardised Regulated and Supervised OVER THE COUNTER Non- Standardised Self-Regulated

Importancia del Mercado Concentration------Systemic Risk

El problema Reguladores Formales United States: Federal Reserve Department of Treasury Securities and Exchange Commission (SEC) Commodity Futures Trading Commission (CFTC)

El problema United Kingdom Previously Financial Services Authority (FSA) From April 2013: Bank of England- Financial Policy Committee Prudential Supervision Authority (PRA) Financial Conduct Authority (FCA)

El Problema ‘Regulador Informal’ International Swaps and Derivatives Association ISDA2 + Association was founded in 1985 with the mission to work for safe and efficient OTC derivatives market + Membership was progressively broad up reaching over 840 members 2. http://www2.isda.org/about-isda/ accessed 3rd march 2013

El Problema Funciones- Functions Dos formas de integración de normas emitidas por particulares- Two forms of private law integration El uso del ISDA Master Agreement- The use of ISDA Master Agreement Influencia en la legislación nacional- Influence on national regulation3 4. The objective of safe harbours is to facilitate the smooth execution and settlement of OTC derivatives contracts irrespective of whether the intention of the parties to the agreement is to hedge or speculate and irrespective of whether one of the parties to the agreement becomes insolvent’ ibid To facilitate the settlement of ‘safe harbours’ ISDA offers a Model Netting Law and implementation guide to assist national authorities. ‘The model addresses immunity from conventional insolvency procedures and exemptions from relevant gambling legislation.’ ibid 19.

El Problema Tecnicas3- Techniques Método Legislativo- Legislative Method Método de Common Law- Common law Method 3. Biggins and Scott nominated them as Legislative Method and Common Law Method as part of the juridification of the Regulatory Space. John Biggins and Collin Scott, ‘Extending and contracting jurisdictions in a transnational private regulatory regime: efficiency, legitimacy, ISDA and the Derivatives Markets’ (2011) UCD Working Papers in Law, Criminology & Socio-Legal Studies Research Paper No. 51/2011, November 1, 6 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1952582 accessed 2nd November 2012

El Problema Regulación Fragmentada- Fragmented regulatory space4- Tres Preguntas- Three Queries: Efectividad- Effectiveness Legitimidad- Legitimacy Responsabilidad- Accountability Collin Scott, ‘Analysing Regulatory Space: Fragmented Resources and Institutional Design’ (2001). Public Law 329 http://eprints.lse.ac.uk/18594/ accessed 2nd November 2012

The issue Cambios y Desafíos - Two important regulatory changes and challenges ISDA representing significant regulatory force? Greater prominence of Central Counterparties CCPs and Trade Repositories TRs

Ligia Catherine Arias Barrera GRACIAS Ligia Catherine Arias Barrera PhD candidate- Financial Law University of Warwick Web: http://works.bepress.com/ligiacatherine_ariasbarrera/ Warwick ePortfolio: http://go.warwick.ac.uk/ep/pg/larmab Blog: http://financeandcorporatelaw.blogspot.co.uk