ISDA and Tokenovate Launch Smart Contract Taskforce to Automate Derivatives Processing
The International Swaps and Derivatives Association (ISDA) has partnered with Tokenovate to FORM a FINOS taskforce developing smart contract infrastructure for post-trade automation. This initiative targets the $700 trillion interest rate derivatives market, where manual processing of rate resets creates operational inefficiencies.
The collaboration will deliver open-source CDM workflows, starting with automation of ISDA's 2021 Interest Rate Derivatives Definitions. Transition to risk-free rates has compounded operational challenges, requiring daily compounding calculations that demand blockchain-level precision.
The framework builds on ISDA's whitepaper 'Smart Derivatives Contracts: From Concept to Construction,' translating legal standards into executable code. This represents a foundational step toward programmable financial infrastructure capable of handling trillions in notional value.
