Isda working group to draw up new, standardised CSA

Derivatives market set for shake-up as confusion over how to price multi-currency CSA trades drives a push towards a standardised collateral agreement

A group of major dealers is working on a new credit support annex (CSA) agreement, meant to standardise what collateral can be posted in bilateral over-the-counter derivatives trades.

The feasibility study, taking place under the auspices of the International Swaps and Derivatives Association, is in the early stages, but comes in response to the variety of CSAs in the market, and a lack of consensus over how to value derivatives where counterparties are allowed to post collateral in multiple