Template:Isda Automatic Early Termination comp
Redlines
- 1987 ⇒ 1992: Redline of the ’92 vs. the ’87: comparison (and in reverse)
- 1992 ⇒ 2002: Redline of the ’02 vs. the ’92: comparison (and in reverse)
- 1987 ⇒ 2002: Redline of the ’92 vs. the ’87: comparison (and in reverse)
Discussion
{{{{{1}}}|Automatic Early Termination}} first appears in the 1992 ISDA. 1987 was still early doors in the life of the over-the-counter derivatives market — the first swap was only six years earlier, remember — and the Basel Committee murmurings about the capital risks posed by infinite leverage were only really just starting to take flight. It can’t have occurred to ISDA’s crack drafting squad™ that an insolvency regime might treat contractual provisions with less respect the moment after a formal bankruptcy than it did the moment before.
The language of {{{{{1}}}|6(a)}} does not change between the 1992 ISDA and the 2002 ISDA. ATE only applies on certain limbs of the definition of {{{{{1}}}|Bankruptcy}}.