ISDA Master Agreement: Difference between revisions

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====Architecture====
====Architecture====
*'''Structure''': How it hangs together – Master/Schedule/CSA/Master Confirmations/Confirms  
*'''Structure''': How it hangs together – Master/Schedule/CSA/Master Confirmations/Confirms  
*'''Big drafting issues'''
====='''Big drafting issues'''=====
**[[Valuation Agent - CSA Provision|Valuation]] and [[Calculation Agent - ISDA Provision|Calculation]]: of transactions – differing standards between asset  classes
*[[Valuation Agent - CSA Provision|Valuation]] and [[Calculation Agent - ISDA Provision|Calculation]]: of transactions – differing standards between asset  classes
**Credit:  
*Credit:  
***{{isdaprov|Events of Default}} and {{isdaprov|Termination Event}}s, the differences between them
**{{isdaprov|Events of Default}} and {{isdaprov|Termination Event}}s, the differences between them
***{{isdaprov|Cross Default}} and inadvertent solvency risks
**{{isdaprov|Cross Default}} and inadvertent solvency risks
***{{isdaprov|Additional Termination Events}} that will be specific to counterparties
**{{isdaprov|Additional Termination Events}} that will be specific to counterparties
***{{isdaprov|Credit Support Provider}}s,  
**{{isdaprov|Credit Support Provider}}s,  
***{{isdaprov|Specified Entities
**{{isdaprov|Specified Entities
**[[Close out]]:
*[[Close out]]:
How close out works
**How close out works
[[Netting]] and [[set off]]
**[[Netting]] and [[set off]]
o [[Netting]]
=====[[Netting]]=====
The importance of [[close-out netting]]
**The importance of [[close-out netting]]
Netting opinions
**Netting opinions
Counterparty types
**Counterparty types
Automatic Early Termination
**Automatic Early Termination
Collateral  
**Collateral  
Multibranch parties
**Multibranch parties
o Collateral: How the CSA works
=====Collateral=====
Title transfer versus pledge
How the CSA works
“Equivalent” credit support
**Title transfer versus pledge
Independent Amounts
**“Equivalent” credit support
Changes wrought by regulations for variation margin
**Independent Amounts
Valuation of collateral and exposure values
**Changes wrought by regulations for variation margin
o Tax representations: Hire Act, FACTCA, payer and payee representations
**Valuation of collateral and exposure values
o Notices and communications
*Tax representations: Hire Act, FACTCA, payer and payee representations
o Definitions booklets
=====Notices and communications=====
- Process issues
=====Definitions booklets=====
o Capacity and authority
=====Process issues=====
o Onboarding and AML
*Capacity and authority
o Static data and netting flags
*Onboarding and AML
o Who are the stakeholders?
*Static data and netting flags
Credit
=====Who are the stakeholders?=====
Treasury
**Credit
Legal
**Treasury
Trading
**Legal
Sales
**Trading
**Sales
 


{{seealso}}
{{seealso}}

Revision as of 17:37, 13 January 2017

ISDA Anatomy™
incorporating our exclusive ISDA in a Nutshell™

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Index: Click ᐅ to expand:
ISDA
Navigation
The Varieties of ISDA Experience
Subject 2002 (wikitext) 1992 (wikitext) 1987 (wikitext)
Preamble Pre Pre Pre
Interpretation 1 1 1
Obligns/Payment 2 2 2
Representations 3 3 3
Agreements 4 4 4
EODs & Term Events 5

Events of Default
FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA
Termination Events
Illegality • Tax Event • TEUM • CEUM • ATE •

5

Events of Default
FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA
Termination Events
Illegality • Tax Event • TEUM • CEUM • ATE •

5

Events of Default
FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA
Termination Events
Illegality • FM • Tax Event • TEUM • CEUM • ATE •

Early Termination 6

Early Termination
ET right on EOD • ET right on TE • Effect of Designation • Calculations

6

Early Termination
ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off

6

Early Termination
ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off

Transfer 7 7 7
Contractual Currency 8 8 8
Miscellaneous 9 9 9
Offices; Multibranch Parties 10 10 10
Expenses 11 11 11
Notices 12 12 12
Governing Law 13 13 13
Definitions 14 14 14
Schedule Schedule Schedule Schedule
Termination Provisions Part 1 Part 1 Part 1
Tax Representations Part 2 Part 2 Part 2
Documents for Delivery Part 3 Part 3 Part 3
Miscellaneous Part 4 Part 4 Part 4
Other Provisions Part 5 Part 5 Part 5

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Foundational concepts

Architecture

  • Structure: How it hangs together – Master/Schedule/CSA/Master Confirmations/Confirms
Big drafting issues
Netting
    • The importance of close-out netting
    • Netting opinions
    • Counterparty types
    • Automatic Early Termination
    • Collateral
    • Multibranch parties
Collateral

How the CSA works

    • Title transfer versus pledge
    • “Equivalent” credit support
    • Independent Amounts
    • Changes wrought by regulations for variation margin
    • Valuation of collateral and exposure values
  • Tax representations: Hire Act, FACTCA, payer and payee representations
Notices and communications
Definitions booklets
Process issues
  • Capacity and authority
  • Onboarding and AML
  • Static data and netting flags
Who are the stakeholders?
    • Credit
    • Treasury
    • Legal
    • Trading
    • Sales


See also

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