About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

JPMorgan Agrees to Provide ISDA with CDS Pricing Engine to Increase Transparency

Subscribe to our newsletter

JPMorgan has agreed to hand over its proprietary credit default swap (CDS) pricing engine to the International Swaps and Derivatives Association (ISDA) as an open source platform with a view to improving transparency in the market. It is hoped that this move will deter regulators from stepping in to regulate the sector, which has come under increased scrutiny over the last six months.

Last month, Colin Peterson, chairman of the US House of Representatives agriculture committee, proposed a draft bill under which CDS trading would be banned for investors that do not own the underlying bonds or loans of these derivatives. This proposal was widely condemned by the industry as a move that would end the trading of CDSs.

“This bill would increase the cost and reduce the availability of essential risk management tools while failing to address the true causes of the credit crisis,” explains Eraj Shirvani, ISDA chairman and head of European and Pacific credit sales and trading at Credit Suisse. “Throughout the crisis, CDSs have remained available and liquid. They have been the only means of hedging credit exposures or expressing a view at a critical time for the industry. Impairing their use would be counterproductive to efforts to return the credit markets to a healthy, functioning state.”

The decision by JPMorgan to make its CDS analytical engine, which was developed by its Quantitative Research group, available to the industry via ISDA is seen as a direct reaction to this legislative threat. The association will therefore make the technology available as an open source code in order to increase transparency around CDS pricing.

“JPMorgan has invested a lot of intellectual capital in this analytical engine. Its willingness to assign this to ISDA for us to make it available as open source to the entire industry demonstrates our collective commitment to the integrity of the CDS product,” says Robert Pickel, executive director and CEO of ISDA. “ISDA and its members are vigilant to public concerns around transparency. This is yet another measure of increased standardisation in CDS.”

Subscribe to our newsletter

Related content


Recorded Webinar: The time is now for buy-side firms to re-evaluate their approach to data management

Increased cost pressures, rising volumes of data, and the challenges of legacy systems are pushing buy-side firms to re-evaluate current approaches to data management. The aim is cost-effective, optimised data management that can provide flexibility and scalability, support various data types including ESG data, and ensure headroom for development in line with business objectives. Achieving...


How to Get Ahead on the Data Governance Journey

Data governance that delivers benefits to the business needs to pull together people, process and technology by embracing data ownership, managing metadata, ensuring data quality, and continually improving automation. These are just some of the guidelines for successful data governance set out by a panel of experts at A-Team Group’s recent Data Management Summit in...


Regulatory Reporting Briefing, New York

RegTech Insight (from A-Team Group) is proud to announce the launch of its Regulatory Reporting Briefing taking place in New York and focusing on: Best practices for regulatory reporting with RegTech


Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...