Major dealers may have over 10,000 counterparties with whom they have signed Master Agreements, and many end-users may be counterparties with multiple dealers, creating huge legal and administrative complexity.

To help tackle this, Isda is leading an industry-wide initiative to produce a series of amendments to existing documentation and provide standardised counterparty questionnaires.

Unlike with previous Isda protocols where amendments were effected solely with delivery of an adherence letter, this one will include additional bilateral requirements and the exchange of paperwork and questionnaires.

Markit was chosen to develop an electronic document exchange service in response to an RFP issued by Isda. The pair plan to have an electronic questionnaire and reporting structure operational by 1 August ready for compliance with the Dodd-Frank External Business Conduct rule October deadlines.

Robert Pickel, CEO, Isda, says: "Isda is very pleased to work with Markit to provide an important service to firms who are faced with significant compliance requirements within a very short timeframe. We believe it will be an effective, efficient solution for market participants in the US and eventually in Europe and around the world."