14.4.2011
By Simon Miller
Every credit default swap is confirmed electronically according to an operations benchmarking survey released today.
The International Swaps and Derivatives Association's (ISDA) 2011 Operations Benchmarking Survey showed that the confirmation process has been completely automated and 100% of eligible credit default swaps are confirmed electronically, compared with 99% last year. Similarly, 83% of eligible interest rate derivatives are confirmed electronically compared with 77% last year.
Infrastructure improvements are also reflected in the continuing decrease in confirmations outstanding. Credit derivatives show an average across all respondents of 0.5 business days’ worth of aged outstanding confirmations, compared with 1.1 business days in last year’s survey. Equity derivative confirmations outstanding fell to 6.7 business days compared with 7.3 last year and interest rate derivatives confirmations also fell to 2.1 business days from 2.8 last year.
"Throughout the years, ISDA and its members have led industry efforts to strengthen the operational infrastructure of over-the-counter derivatives," said Robert Pickel, ISDA's executive vice-chairman. "The results of the 2011 ISDA Operations Benchmarking Survey show that the industry continues to focus on building a stronger and more resilient operational infrastructure for these products. "
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