ISDA released a proposal paper today that should be considered carefully by every market participant in OTC derivatives, securities finance and repo for its pros and cons. In Collaboration and Standardization Opportunities in Derivatives and SFT Markets, The gist is that these three products should converge from a legal documentation basis and in technology development, recognizing their already interchangeable roles in financial markets and economically similar outcomes. The basic pitch is understandable and easy to accept. The complicated part is what could happen afterwards.
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