Publication of Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives

SEC Press Release 2011-89

April 7, 2011

The SEC and CFTC published a joint staff study, as required by the Dodd-Frank Act, on the feasibility of requiring standardized computer-readable algorithmic descriptions to describe complex and standardized financial derivatives. The study concluded that current technology is capable of representing derivatives in a common set of computer-readable descriptions, and would be precise enough to use both for calculation of exposures and to serve as part of a binding legal contract. The study also notes that before this would be possible, universal identifiers would need to be implemented, and that further studies should be done to address the costs and benefits of having aspects of derivatives documentation represented electronically.

Please contact any of the following Cadwalader attorneys if you have any questions about this item:

Steven Lofchie; [email protected] Jeffrey Robins; [email protected]

Cross Reference

Joint Study on the Feasibility of Mandating Algorithmic Descriptions for Derivatives

Dodd-Frank § 719(b)