1. 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

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

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

4. 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

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

6. Importancia del Mercado
Concentration------Systemic Risk

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

8. 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)

9. 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. accessed 3rd march 2013

10. 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.

11. 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 accessed 2nd November 2012

12. 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 accessed 2nd November 2012

13. 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

14. Ligia Catherine Arias Barrera
GRACIAS
Ligia Catherine Arias Barrera
PhD candidate- Financial Law
University of Warwick
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