International Swaps and Derivatives Association schedules July 15 launch of the ISDA Notices Hub and starts pre-adherence protocol

The International Swaps and Derivatives Association (ISDA) announced the forthcoming launch of the ISDA Notices Hub, an online platform intended to allow instant delivery and receipt of termination notices and other key contractual communications in over-the-counter derivatives relationships. ISDA also initiated a pre-adherence process for a protocol designed to enable firms to use the hub under their existing ISDA Master Agreements. The Notices Hub is positioned as a response to operational risks associated with physical delivery requirements in ISDA Master Agreements, including difficulties experienced during pandemic office closures and other disruptions, and problems where counterparties’ address details are outdated. The platform is designed to provide secure delivery with automatic alerts to designated recipients, support centralized updating of physical address details across agreements through a single entry, and facilitate the exchange of waivers (including net asset threshold event waivers). ISDA’s outreach indicated planned adoption by two thirds of its global primary dealer member category and 42 buy-side institutions; access will be free for buy-side firms and dealers will receive a two-year discount for early adoption, while protocol adherence is free for all market participants. The ISDA Notices Hub is scheduled to launch on July 15, and firms can prepare by completing the pre-adherence process to amend relevant documentation between adhering counterparties.