Comment letters addressing Asian swaps regulation
Comments on New Product Approval (NPA) process in South Korea
September 18, 2009
In this comment letter, the International Swaps and Derivatives Association (ISDA) writes to the National Assembly of the Republic of Korea regarding the proposed New Product Approval (NPA) process. The legislation requires review and approval of certain types of over-the-counter (OTC) derivatives by the Korea Financial Investment Association (KOFIA) before they can be traded.
ISDA claims the problem is not with the products, but rather how they are sold — and to whom. The comment letter lists other concerns they have with the new legislation and argue it would have a negative impact on Korean derivatives trading.