ISDA Seeks Views on Updating FX Definitions

ISDA has launched a survey of FX market participants to better understand if its FX and Currency Options Definitions, released in 1998, need to be updated and improved.

The association says it is canvassing views on documentation such as Annex A, supplements, additional provisions, forms of confirmations and template terms do see how they might be enhanced, taking into account developments and events in the FX market, for example certain currencies becoming non-deliverable, and the general evolution of foreign exchange trading since 1998.

The survey will ask questions on the current landscape of market stakeholders; possible areas for change and improvement; the potential effects on market participants and infrastructures of undertaking changes; and suggestions on the best way to implement any agreed changes.

It adds that one goal is to ensure that any updates, consolidations, or changes to the FX Definitions would facilitate digitisation of this documentation, along the lines of the digital publication of the ISDA 2021 Interest Rate Derivatives Definitions.

If ISDA does move forward with updates and improvements to the FX Definitions, it says additional market outreach and coordination will be required. “We expect to provide more information regarding survey responses and, if applicable, a strategy for next steps during the second half of 2023,” it states. “ISDA plans to share an aggregated and anonymised summary of survey responses publicly but will not share names of respondents or individual responses outside of ISDA and EMTA staff.”

The survey can be accessed here.