Transaction - ISDA Provision

ISDA Anatomy™ →Go uptown 1992 ISDA (Multicurrency — Cross Border) ISDA ® International Swap Dealers Associations, Inc. Master Agreement dated as of ...................................... ...................................... and ...................................... (“Party A”) (“Party B”) have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those Transactions. Accordingly, the parties agree as follows: — (view template) 2002 ISDA ISDA ® International Swaps and Derivatives Association, Inc. 2002 Master Agreement dated as of ...................................... ...................................... and ...................................... (“Party A”) (“Party B”) have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that are or will be governed by this 2002 Master Agreement, which includes the schedule (the “Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties or otherwise effective for the purpose of confirming or evidencing those Transactions. This 2002 Master Agreement and the Schedule are together referred to as this “Master Agreement”. Accordingly, the parties agree as follows:― (view template) Index: Click ᐅ to expand: ISDA Navigation See ISDA Comparison for a comparison between the 1992 ISDA and the 2002 ISDA. 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 • FM • 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 • DUSS • Cross Default • Bankruptcy • MWA Termination Events: Illegality • Tax Event • TEUM • CEUM Early Termination 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations; Payment Date • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET • Set-off 6 Early Termination: ET right on EOD • ET right on TE • Effect of Designation • Calculations • Payments on ET 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 Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

What exactly counts as a Transaction under an ISDA Master Agreement is a matter of some moment, because it will determine what you need to take into account when applying close-out netting, and (unless you’ve specified a narrower range of Covered Transactions) the values you need to calculate when making collateral calls under a 1995 CSA.

Unusually, for a document so outrageously verbose in most other respects, the ISDA Master Agreement has little to say on the subject, the 1992 ISDA leaving it entirely to the preamble:

... one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement.

And the 2002 ISDA not going much further.

“Transaction” has the meaning specified in the preamble.

The 2002 ISDA Equity Derivatives Definitions also define “Transaction”, to no apparent point.

Netting

These are the types of transaction that are contemplated for netting purposes in the ISDA opinion (for England)

• Basis swap
• bond forward
• bullion option
• bullion swap
• bullion trade
• buy/sell-back transaction
• cap transaction
• collar transaction
• commodity index transaction
• commodity swap
• contingent credit default swap
• credit default swap option
• credit default swap
• credit derivative transaction on asset-backed securities
• credit spread transaction
• cross currency rate swap
• currency option
• economic statistic transaction
• emissions allowance transaction
• equity forward
• equity index option
• equity option
• equity swap
• floor transaction
• foreign exchange transaction
• forward rate transaction
• fund option transaction
• fund forward transaction
• interest rate option
• interest rate swap
• longevity/mortality transaction
• physical commodity transaction
• property index derivative transaction
• repurchase transaction
• securities lending transaction
• swap deliverable contingent credit default swap
• total return swap
• weather index transaction