Carruzzo Comments to Derivatives Week on ISDA Sample Provisions for Negotiating Collateral Segregation Arrangements

Corporate associate Fabien Carruzzo was quoted in a Derivatives Week article addressing collateral segregation issues and sample provisions for negotiating tri-party custodian agreements, to be published by the International Swaps and Derivatives Association. While collateral has historically been posted directly to the dealer, the ISDA publication includes sample provisions enabling market participants to document the segregation of their collateral, including provisions dealing with how and when end users may access their collateral. Carruzzo commented on collateral access provisions and was quoted as saying “The fact that the ISDA has published definitions gives the occasion for [an end user] to knock on a dealer’s door and say, ‘These arrangements have become standard.’ So it’s harder for dealers to claim that they only do this with their larger clients.”