SIFMA's Asset Management Group Helps Develop New Market Agreed Coupon for Interest Rate Swaps

SIFMA announced that SIFMA's Asset Management Group (AMG), working in collaboration with the International Swaps and Derivatives Association (ISDA), has helped to develop a new interest rate swap (IRS) contract structure with pre-defined, market-agreed terms.

Specifically, SIFMA AMG published a term sheet and rationale for a new Market Agreed Coupon (MAC) contract that would promote liquidity and enhance transparency in IRS trading. The proposed MAC contracts are a set of defined IRS contract specifications, including start and end dates and fixed coupon rates, which will be available for use by all swap counterparties on a voluntary basis.

Click hereto view announcement in full (links externally to SIFMA website).