The International Swaps and Derivatives Association (ISDA) is working with the Central Bank of Chile to open up the jurisdiction’s derivatives market with a new ‘master agreement’.
The ISDA aims to create a modified agreement that takes into account Chilean regulatory requirements and laws on bankruptcy. If approved, the new agreement will open up the market to foreign businesses and investors.
ISDA general counsel of the Americas, head of equity, FX and interest rates Katherine Tew Darras said: “This has been a big project for us and we’ve been working on this for the past year or so. The recognition of the master agreement will significantly impact the potential for a derivatives market in this jurisdiction.”
If the approval process reaches the next stage the ISDA will instruct outside counsel to work on the jurisdiction-specific agreement.
Darras said: “Derivatives activity in the various jurisdictions in Latin America will open up more with each country’s recognition of netting provisions. The ISDA is involved in efforts to advance the derivatives market across the globe.”
The ISDA is also undertaking a recruitment drive in its in-house legal department (The Lawyer, 11 February). It aims to add four to the team in response to increased derivatives activity globally.