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.

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ISDA

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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

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2021 ISDA Interest Rate Derivatives Definitions

See also