Template:M comp disc IETA Force Majeure and 13
Definition
This is the IETA Master Agreement’s equivalent of a Settlement Disruption Event in the ISDA EU Emissions Annex. It is broadly the same, so you do wonder whose idea it was to call it something different.
Let us speculate: the IETA was written first, is independent of the ISDA universe, and for reasons best known to IETA’s crack drafting squad™, they decided to call this a Force Majeure. Being beyond the reasonable control of the affected party this is not entirely unreasonable.
ISDA’s crack drafting squad™ was, as usual, late to the “novel asset class” party and, as it couldn’t find a spot, decided to park its tanks on IETA’s lawn, borrowing much of the technology wholesale but unable to call this event a Force Majeure because the ISDA Master Agreement already has a Force Majeure Event, this is quite different, and that would confuse people even beyond ISDA’s tolerance for confusing people.[1]
So ISDA’s crack drafting squad™ went with its product specific “stuff happens” label, Settlement Disruption Event.
Clause 13
You will recognise “Suspension Event” from the IETA Master Agreement and the ISDA EU Emissions Annex, and “Force Majeure” from the IETA Master Agreement and the EFET Allowances Appendix, and indirectly in the ISDA EU Emissions Annex, where it goes by the name of “Settlement Disruption Event”, but is largely the same.
- ↑ Seeing as the IETA Master Agreement borrows a bit of technology from the 1992 ISDA is is conceivable that IETA’s crack drafting squad™ didn’t realise there was a Force Majeure Event in the 2002 ISDA, as there was not one in the 1992 ISDA. I am guessing.