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Financial industry preps for “Big Bang” protocol on derivatives – Related Stories – SIFMA SmartBrief

The writing of contracts in the world of credit derivatives is getting an overhaul as the financial industry attempts to quell criticism that the sector poses a systemic threat. Hundreds of financial institutions and asset managers plan to adopt the “Big Bang” protocol. “The benefit of the Big Bang is to facilitate the migration of trades to a central clearing counterparty,” said Brian Yelvington of CreditSights. “Every change made to the contracts makes them more suitable for a CCP — so broadly, the market should benefit from having that risk mutualized and having a central repository for trade data.”

via Financial industry preps for “Big Bang” protocol on derivatives – Related Stories – SIFMA SmartBrief.

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