2021 ISDA Interest Rate Derivatives Definitions

ISDA Anatomy™ From our machine overlords Here is what, NiGEL, our cheeky little GPT3 chatbot had to say when asked to explain: The 2021 ISDA Interest Rate Derivatives Definitions were published on June 11, 2021 in wholly digital form, and are designed to ensure ISDA’s ability to corner the market and extract rent from its documentation — sorry, did I say that or was I thinking it? I mean of course content — keeps pace with changes in market practice, regulation, and technology. They replace the 2006 ISDA Definitions as the standard repository of all knowledge and wisdom on cleared and non-cleared interest rate derivatives as, especially following the LIBOR farrago, the latter had become totally unwieldy with upwards of 20 supplements. The new ones are digital, preternaturally supplemented and updated — I know, right? Can’t you just see moribund risk terms loving that — and much harder for skinflints to rip off, or community-minded windbags to helpfully, but sardonically, summarise and analyse in wiki format. The 2021s introduce various methods of cash settlement — I0146m sure you’ve been holding out for a smorgasbord of those — and require the Calculation Agent now to use commercially reasonable procedures to produce a commercially reasonable result — a change, if it is a change, that we applaud, but wonder — or would wonder, if chatbots could wonder — whether, since that reasonableness has been embedded into the ISDA construct for some decades now, this is much of a change. view template Disclaimer: NiGEL’s a neural network, he drinks a lot, and he spends too much time on the internet, so if you listen to anything he has to say you only have yourself to blame. Come to think of it, that is also true of the JC in general. 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. Premium version of this page

The successor to the storied, oft-cited 2006 ISDA Definitions, the new ones are digital. And, as our little chatbot mentions, more reasonable.

See also

• 2006 ISDA Definitions