The International Swaps and Derivatives Association published guidance for trading digital asset derivatives to clarify what happens when things go wrong in an underlying market, such as the collapse of crypto exchangeWhile most of the recent problems have occurred in the spot cryptocurrency market, many of the legal uncertainties could affect digital asset derivatives too.
It will now include the body's first standard documentation for trading digital asset derivatives, initially covering non-deliverable forwards and options on Bitcoin and Ether. The framework sets out the rights and obligations of both sides to a derivatives trade following market disruption, and ISDA also published discussion papers exploring legal questions raised by the bankruptcy of FTX.
You can’t be serious! ISDA-It’s “executives” are from most of the largest institutions in the world. Also those institutions have received some of the largest penalties&fines for cheating. Going way beyond pushing the envelope from borderline legal to illegal to the n th degree.