"New ISDA Equity Derivatives Protocol Open for Adherence" by Vincent Basulto and Richard Lee

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August 9, 2017

All counterparties in the equity derivatives market should be aware that the International Swaps and Derivatives Association, Inc. (“ISDA”) opened the ISDA 2017 OTC Equity Derivatives T+2 Settlement Cycle Protocol (the “T+2 Protocol”) for adherence on July 28, 2017. The T+2 Protocol is designed to facilitate the amendment of existing confirmations for certain OTC equity derivatives transactions to adjust the settlement cycle from T+3 to T+2 for certain referenced underlying securities. The amendment is necessary to align settlement cycles under OTC equity derivatives transaction with the new settlement cycle for securities traded in the United States, Canada, Mexico and Peru scheduled to occur on September 5, 2017.

In this client alert, RK&O attorneys Vincent Basulto and Richard Lee explore the ISDA T+2 Protocol and recommend what steps to take next.

Click here to read the full client alert.