Isda: uncollateralised exposure lower than expected

Author: Danielle Myles | Published: 30 Aug 2011

An International Swaps Derivatives Association (Isda) report has shown that the uncollateralised exposure of US commercial banks in the over-the-counter (OTC) derivatives markets, a key target of Dodd-Frank reforms, is lower than expected.

But attorneys have warned against downplaying the exposure of other market participants and benefit of Dodd-Frank’s collateral requirements.

The August report, titled Counterparty Credit Risk Management in the US OTC Derivatives Markets, estimates that the uncollateralised exposure of US banks which will be subject to Dodd-Frank reforms is $30.4 billion.

The report, based on...