Termination - ISDA Give-Up provision

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The 2005 ISDA Master Give-Up Agreement

You may terminate a give-up by giving notice. Terminating won’t affect live transactions. If AET applies to either party in your ISDA Master Agreement, give-ups will terminate automatically on an Event of Default causing automatic early termination. Termination is effective, depending on what you've elected in Part 5 of the Schedule to the Agreement, a given number of hours after receipt of notice. Exactly what constitutes “receipt” is covered by Section 5(a) of the Agreement. This may do your head in, be warned. So:

  • When, and with how much notice you may terminate: Section 4 (Termination).
  • How you may notify termination, and when the termination notice is deemed effective: Section 5(a).
  • How long after your notice is effective, the termination of the Agreement is effective: Part 5 of the Schedule.

But enough from me - why don't you hear about it in gory detail, direct from the super-brow of ISDA:

Section 4. Termination. This Agreement or any Designation Notice shall remain in effect unless and until terminated by Prime Broker or Dealer. Such termination notice shall be delivered in accordance with one of the methods specified in Section 5(a) of this Agreement. Notwithstanding the provisions of Section 5 of this Agreement, such termination notice shall be effective in accordance with the period of time specified in Part 5 of the Schedule; provided, however, that no such termination shall be effective in respect of either: (a) an outstanding Accepted Transaction; or (b) a Counterparty Transaction that would not be a Problem Transaction and that was entered into prior to the effectiveness of such termination and as to which the Dealer Notice has been promptly sent to Prime Broker. This Agreement shall terminate immediately upon the occurrence of an Early Termination Date in respect of the ISDA Master Agreement between the parties if the parties have specified Automatic Early Termination as applying to either of the partiesNotwithstanding the provisions of Section 5 of this Agreement, such termination notice shall be effective in accordance with the period of time specified in Part 5 of the Schedule; provided, however, that no such termination shall be effective in respect of either: (a) an outstanding Accepted Transaction; or (b) a Counterparty Transaction that would not be a Problem Transaction and that was entered into prior to the effectiveness of such termination and as to which the Dealer Notice has been promptly sent to Prime Broker. This Agreement shall terminate immediately upon the occurrence of an Early Termination Date in respect of the ISDA Master Agreement between the parties if the parties have specified Automatic Early Termination as applying to either of the parties

Of course, the super-brow of ISDA has been known to sap a fellow’s very will to live. No fear, Amwell J's un-patented, entirely unwarranted, cut-the-BS summary service is here for you:

Termination in a Nutshell™ (ISDA Give-Up edition)

Section 4 . Termination. This Agreement and any Designation Notice can be terminated by either the Prime Broker or the Dealer on notice delivered under Section 5(a).

Termination takes effect:

On notice: at the end of the notice period, but termination will not affect:
(a) an outstanding Accepted Transaction; or
(b) a Counterparty Transaction that would not be a Problem Transaction and was entered into before termination and as to which the Dealer Notice has been promptly sent to Prime Broker.
Immediately: immediately if there is an Early Termination Date where Automatic Early Termination applies to either party.

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See also

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