Conflict's end

The second phase of the International Swaps and Derivatives Association's collateral dispute resolution protocol prescribes a market polling mechanism for settling disputes involving illiquid and complex transactions. How will the market poll work and how will it differ from current practices? Matt Cameron reports

Creating a set of acceptable mechanisms to resolve disputes for illiquid, hard-to-value and complex derivatives trades was never going to be straightforward. Designing tools that actually work is one thing; achieving industry-wide consensus on what methods should be used is another matter entirely. So it was not altogether surprising the publication of the second phase of the International Swaps and Derivatives Association's protocol for resolution of disputed collateral calls was delayed.

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