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A [[default under specified transaction]], or "[[DUST]]", is a concept native to the {{isdama}} but which you may see in other Master Trading Documentation (but not all: it is not usual in a {{gmsla}} or a {{gmra}}), which provides a right to terminate a master trading agreement upon a default by your counterparty under another equivalent master agreement {{isdaprov|between you and that counterparty}}.
{{g}}''For the {{isdama}} provision specifically see {{isdaprov|Default Under Specified Transaction}}''<br>


It can be compared to [[cross default]], which allows you to terminate your master agreement when the counterparty defaults under indebtedness ''to a third party'' (not you).
A [[default under specified transaction]], or “[[DUST]]”, is a concept native to the {{isdama}} but which you may see in other master trading documentation (but not a {{gmsla}} or a {{gmra}}). [[DUST]] gives a fellow the right to terminate the master trading agreement upon a default by {{sex|her}} [[counterparty]] under one or more transactions documented under ''different'' [[Master Agreements]] ''between you and that same counterparty''.  


===Differences between cross default and DUST===
Compare and contrast with [[cross default]], which allows you to terminate your master agreement when the counterparty defaults under indebtedness ''to a third party'' (not you).
*Cross default generally references indebtedbess; DUST references bilateral derivative and trading transactions whcih are not in the nature of indebtedness
*Cross default is only triggered once a certain threshhold is hit; DUST is triggered upon any breach;
*Cross default references your counterparty owes to a third party; DUST references other obligations your counterparty owes you


===See also===
{{sa}}
*[[Cross default]]
*[[Cross default]]
*{{isdaprov|Default Under Specified Transaction}} (ISDA)
*{{isdaprov|Default Under Specified Transaction}} (ISDA)
*[[Event of default]]
*[[Event of default]]
 
{{ref}}
{{isdaanatomy}}

Latest revision as of 13:30, 14 August 2024

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For the ISDA Master Agreement provision specifically see Default Under Specified Transaction

A default under specified transaction, or “DUST”, is a concept native to the ISDA Master Agreement but which you may see in other master trading documentation (but not a 2010 GMSLA or a Global Master Repurchase Agreement). DUST gives a fellow the right to terminate the master trading agreement upon a default by her counterparty under one or more transactions documented under different Master Agreements between you and that same counterparty.

Compare and contrast with cross default, which allows you to terminate your master agreement when the counterparty defaults under indebtedness to a third party (not you).

See also

References

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