ISDA Anatomy

Here is the great landing page for the ISDA Master Agreement in all its beautiful articulations. There is a lot of information here: budding ninjas may just be amped up to dive in to the clause table a the bottom. For those seeking a gentler introduction to the world of derivatives — financial weapons of mass destruction (© Warren Buffett) after all, so to be handled with care — here is a quick overview:

ISDA Anatomy™ →Go uptown Finding your way around the ISDA Anatomy, for those not minded to work it out for themselves. 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.

The Anatomy

In the table below, your gateway to the in-depth clause-by-clause and subclause-by-subclause analysis. Each page contains:

• The actual clause of the ISDA agreement
• Our plain English “nutshell” summary of that clause
• A “comparison” section, summarising the differences between the corresponding clauses in the 1992 ISDA and the 2002 ISDA.
• A “summary” section, explaining what the clause does, how it works, frequent amendments to it, and controversies in the ISDA community.
• An optional “general” section, for those clauses of frequent controversy, going into a little more detail; and
• An even-more-optional “details” section, that dives into the paranoid beating heart of ISDA Ninjery — though this is reserved for really special occasions.

You can also access the clauses alphabetically from the nifty little dropdowns in the infobox on the right of every page.

the JC’s plain English ISDA

Ever thought it would be great to have a summarised, de-pedantified, ISDA Master Agreement in a single place you could read through without feelings of remorse, loathing and an incoming migraine? Fear not! There is one! Here is JC’s whole, nutshell, plain English ISDA in one place!

Okay, and what about a side-by-side summary of the whole pain-English, full ISDA and the JC’s lovely, airy, high fibre, plain-English nutshell summary? Well, for premium contentsubscribers we’ve got you covered.

Booklets and whatnot

We also have anatomies of some — not all — of ISDA’s product booklets and credit support annexes, the most developed of which (including Equity Derivatives and EU Emissions Allowances are in the side-bar on the right under “Anatomies”.

Introductory material

What is a swap, as explained to my neighbour Phil. We developed these explainers to help Phil swot for his exams to be a tour guide to the city of London. (He passed!)

Then there’s the history of the ISDA Master Agreement (some of which we freely admit we made up), and long, impassioned and liable-to-fall-upon-deaf-ears screeds about Close-out Netting, the need for netting opinions variation margin, and various other things.

Financial weapons of mass destruction™ corner

We are developing our own game of FWMD Top Trumps. It is what every neurotic millennial needs: Have fun and fret about forthcoming financial oblivion!

The ISDA rabbithole

Late, for a very important date? Then strap yourselves in, readers...

Structure of the 2002 ISDA	Structure of the 1992 ISDA
Preamble	Preamble
1 Interpretation 1(a) Definitions 1(b) Inconsistency 1(c) Single Agreement	1 Interpretation 1(a) Definitions 1(b) Inconsistency 1(c) Single Agreement
2 Obligations 2(a) General Conditions (incl Section 2(a)(iii)) 2(b) Change of Account 2(c) Netting 2(d) Deduction or Withholding for Tax	2 Obligations 2(a) General Conditions (incl Section 2(a)(iii)) 2(b) Change of Account 2(c) Netting 2(d) Deduction or Withholding for Tax 2(e) Default Interest
3 Representations 3(a) Basic Representations 3(b) Absence of certain events 3(c) Absence of litigation 3(d) Accuracy of Specified Information 3(e) Payer Tax Representations 3(f) Payee Tax Representations 3(g) No Agency (2002 ISDA only)	3 Representations 3(a) Basic Representations 3(b) Absence of Certain Events 3(c) Absence of Litigation 3(d) Accuracy of Specified Information 3(e) Payer Tax Representations 3(f) Payee Tax Representations
4 Agreements 4(a) Furnish Specified Information 4(b) Maintain Authorisations 4(c) Comply with Laws 4(d) Tax Agreement 4(e) Payment of Stamp Tax	4 Agreements 4(a) Furnish Specified Information 4(b) Maintain Authorisations 4(c) Comply with Laws 4(d) Tax Agreement 4(e) Payment of Stamp Tax
5 Events of Default and Termination Events 5(a) Events of Default 5(a)(i) Failure to Pay or Deliver 5(a)(ii) Breach of Agreement 5(a)(iii) Credit Support Default 5(a)(iv) Misrepresentation 5(a)(v) Default Under Specified Transaction 5(a)(vi) Cross Default 5(a)(vii) Bankruptcy 5(a)(viii) Merger without Assumption 5(b) Termination Events 5(b)(i) Illegality 5(b)(ii) Force Majeure Event 5(b)(iii) Tax Event 5(b)(iv) Tax Event Upon Merger 5(b)(v) Credit Event Upon Merger 5(b)(vi) Additional Termination Event 5(c) Hierarchy of Events 5(d) Deferral of Payments and Deliveries During Waiting Period 5(e) Inability of Head or Home Office to Perform Obligations of Branch	5 Events of Default and Termination Events 5(a) Events of Default 5(a)(i) Failure to Pay or Deliver 5(a)(ii) Breach of Agreement 5(a)(iii) Credit Support Default 5(a)(iv) Misrepresentation 5(a)(v) Default Under Specified Transaction 5(a)(vi) Cross Default 5(a)(vii) Bankruptcy 5(a)(viii) Merger Without Assumption 5(b) Termination Events 5(b)(i) Illegality 5(b)(ii) Tax Event 5(b)(iii) Tax Event Upon Merger 5(b)(iv) Credit Event Upon Merger 5(b)(v) Additional Termination Event 5(c) Event of Default and Illegality
6 Early Termination 6(a) Right to Terminate following Event of Default 6(b) Right to Terminate following Termination Event 6(b)(i) Notice (of Termination Event) 6(b)(ii) Transfer to Avoid Termination Event 6(b)(iii) Two Affected Parties 6(b)(iv) Right to Terminate 6(c) Effect of Designation 6(d) Calculations 6(e) Payments on Early Termination 6(e)(i) Events of Default (Early Termination Payments) 6(e)(ii) Termination Events (Early Termination Payments) 6(e)(iii) Adjustment for Bankruptcy (Early Termination Payments) 6(e)(iv) Adjustment for Illegality or Force Majeure Event 6(e)(v) Pre-Estimate (Early Termination Payments) 6(f) Set Off	6 Early Termination 6(a) Right to Terminate Following Event of Default 6(b) Right to Terminate Following Termination Event 6(b)(i) Notice (of Termination Event) 6(b)(ii) Transfer to Avoid Termination Event 6(b)(iii) Two Affected Parties 6(b)(iv) Right to Terminate 6(c) Effect of Designation 6(d) Calculations 6(e) Payments on Early Termination 6(e)(i) Payments on Events of Default) 6(e)(ii) Payments on Termination Events 6(e)(iii) Adjustment for Bankruptcy 6(e)(iv) Pre-Estimates
7 Transfer	7 Transfer
8 Contractual Currency 8(a) Payment in Contractual Currency 8(b) Judgments 8(c) Separate Indemnities 8(d) Evidence of Loss	8 Contractual Currency 8(a) Payment in Contractual Currency 8(b) Judgments 8(c) Separate Indemnities 8(d) Evidence of Loss
9 Miscellaneous 9(a) Entire Agreement 9(b) Amendments 9(c) Survival of Obligations 9(d) Remedies Cumulative 9(e) Counterparts and Confirmations 9(f) No Waiver of Rights 9(g) Headings 9(h) Interest and Compensation (2002 ISDA only)	9 Miscellaneous 9(a) Entire Agreement 9(b) Amendments 9(c) Survival of Obligations 9(d) Remedies Cumulative 9(e) Counterparts and Confirmations 9(f) No Waiver of Rights 9(g) Headings
10 Offices; Multibranch Parties	10 Offices; Multibranch Parties
11 Expenses	11 Expenses
12 Notices 12(a) Effectiveness 12(b) Change of Addresses	12 Notices 12(a) Effectiveness 12(b) Change of Addresses
13 Governing Law and Jurisdiction 13(a) Governing Law 13(b) Jurisdiction 13(c) Service of Process 13(d) Waiver of immunities	13 Governing Law 13(a) Governing Law 13(b) Jurisdiction 13(c) Service of Process 13(d) Waiver of immunities
14 Definitions Additional Representation Additional Termination Event Affected Party Affected Transactions Affiliate Agreement Applicable Close-out Rate Applicable Deferral Rate Automatic Early Termination Burdened Party Change in Tax Law Close-out Amount Confirmation consent Contractual Currency Convention Court Credit Event Upon Merger Credit Support Document Credit Support Provider Cross-Default Defaulting Party Designated Event Determining Party Early Termination Amount Early Termination Date electronic messages English law Event of Default Force Majeure Event General Business Day Illegality Indemnifiable Tax law Local Business Day Local Delivery Day Master Agreement Merger Without Assumption Multiple Transaction Payment Netting Non-affected Party Non-default Rate Non-defaulting Party Office Other Amounts Payee Payer Potential Event of Default Proceedings Process Agent rate of exchange Relevant Jurisdiction Schedule Scheduled Settlement Date Set-off Specified Entity Specified Indebtedness Specified Transaction Stamp Tax Stamp Tax Jurisdiction Tax Tax Event Tax Event Upon Merger Terminated Transactions Termination Currency Termination Currency Equivalent Termination Event Termination Rate Threshold Amount Transaction Unpaid Amounts Waiting Period	14 Definitions Additional Termination Event Affected Party Affected Transactions Affiliate Applicable Rate Burdened Party Change in Tax Law consent Credit Event Upon Merger Credit Support Document Credit Support Provider Default Rate Defaulting Party Early Termination Date Event of Default Illegality Indemnifiable Tax law Local Business Day Loss Market Quotation Non-default Rate Non-defaulting Party Office Potential Event of Default Reference Market-makers Relevant Jurisdiction Scheduled Payment Date Set-off Settlement Amount Specified Entity Specified Indebtedness Specified Transaction Stamp Tax Tax Tax Event Tax Event Upon Merger Terminated Transactions Termination Currency Termination Currency Equivalent Termination Event Termination Rate Unpaid Amounts