CUSIPs Made Available for MAC Interest Rate Swaps | Practical Law

CUSIPs Made Available for MAC Interest Rate Swaps | Practical Law

SIFMA and ISDA recently announced the development of CUSIP numbers for standardized ISDA market agreed coupon (MAC) interest rate swap contracts.

CUSIPs Made Available for MAC Interest Rate Swaps

Practical Law Legal Update 2-552-3125 (Approx. 3 pages)

CUSIPs Made Available for MAC Interest Rate Swaps

by Practical Law Finance
Published on 17 Dec 2013 • International, USA (National/Federal)
SIFMA and ISDA recently announced the development of CUSIP numbers for standardized ISDA market agreed coupon (MAC) interest rate swap contracts.
On December 12, 2013, ISDA and the SIFMA Asset Management Group announced the establishment of CUSIP numbers for market agreed coupon (MAC) interest rate swap contracts (see Legal Update, Standard Market Agreed Coupon (MAC) Interest Rate Swap Confirmation Introduced by ISDA).
ISDA and SIFMA developed the CUSIP numbers for MAC contracts, in conjunction with CUSIP Global Services, in order to:
  • Standardize the identification of MAC contracts.
  • Facilitate trading and transparency in the interest rate swap market.
  • Enhance the operational efficiency of MAC contracts.
  • Help with position collapsing (swap reconciliation and compression).
  • Streamline communications between market participants, such as asset managers, futures commission merchants (FCMs), banks, swap execution facilities (SEFs) and swap data repositories (SDRs). For definitions of these terms, see Legal Update, The Dodd-Frank Alphabet Soup Quiz: Answers and Explanations.