When asked about the greatest challenges they expect to face, many organisations will echo the response attributed to a former British prime minister, Harold Macmillan: “Events, dear boy, events.”
When formulating the definitions for its master agreement, the International Swaps and Derivatives Association tries to plan for every kind of event. And there has been no shortage of events in the crypto sector over the past year.
On January 26, Isda published documents containing its standard definitions for bitcoin and ethereum non-deliverable forwards and options. These definitions – Isda’s first to relate specifically to crypto – have been generally well received by institutional and crypto-native firms. Yet some in the industry still have concerns about the number of provisions they contain, the level of prescription for certain events, and the amount of discretion that calculation agents would have during a fork disruption.
“Isda…
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