Template:M premium 2002 ISDA 2(a)(iii)

• Mechanics:

• How and when 2(a)(iii) is or, more to the point not, triggered.
• The confusion arising from no-one knowing whether 2(a)(iii) applies.
• The confusion arising from not knowing when it applies.
• The JC’s theory about why anyone thought 2(a)(iii) was a good idea in the first place.
• The JC’s view that even if once upon a time it was, Section 2(a)(iii) is no longer fit for purpose.
• How Section 2(a)(iii) held up during the sanctions extravaganza when Russia invaded Ukraine (TL;DR: it didn’t help!)

• Regulatory issues

• Why regulators don’t like 2(a)(iii).
• What the courts think of 2(a)(iii) — in a nutshell, they are confused about it.
• A table comparing the six major decisions on the clause.

• Practical issues:

• How Section 2(a)(iii) operates in the case of non-payment-or-delivery defaults.
• How corporate buyers of fully paid options might feel about 2(a)(iii) (hint: not happy!)
• Amendments those corporates might think about making if they want to feel happier.