Linklaters supports ISDA on a new whitepaper on Contractual Standards for Digital Asset Derivatives

Linklaters were pleased to support the International Swaps and Derivatives Association, Inc. (ISDA) on its whitepaper on Contractual Standards for Digital Asset Derivatives, released on 14 December 2021.

The whitepaper identifies features of different types of digital assets and related markets and considers their relevance in the context of documenting digital asset derivatives contracts, including provisions relating to disruption events and valuation as well as interaction with ISDA’s broader documentary architecture. The paper also outlines ISDA’s plans to support the market through the development of contractual standards for digital asset derivatives.

It is hoped that the publication of the whitepaper and ISDA’s ongoing work in this area will help provide a solid foundation for the development of a robust, liquid market in digital asset derivatives.

The whitepaper can be accessed here.

Michael Voisin, Derivatives partner at Linklaters, says:

“We have seen a real growth in appetite for digital asset derivatives over the last couple of years. Nevertheless, the lack of contractual standards (among other things) has been somewhat of an impediment to market development. ISDA’s work in this area is therefore hugely welcome.”

Richard Hay, Counsel and UK Head of Fintech at Linklaters, says:

“We are really delighted to support our client ISDA in taking steps towards the development of contractual standards for digital asset derivatives. There is a great deal of focus on digital asset-linked products, and the development of standards will help further unlock the potential of this market.”

The whitepaper on Contractual Standards for Digital Asset Derivatives included input from an ISDA working group that includes dealers, asset managers, institutional investors, funds and end users.