Template:M summ 2002 ISDA Preamble
The preamble, which talks in somewhat laboured terms about the architecture of the ISDA contract, is the only place in the ISDA Master Agreement where the concept of the “Transaction” — being the actual swaps you put on under one of these confounded agreements — is defined.
Transaction
These are the types of transaction that are contemplated for netting purposes in the ISDA opinion (for England)
- Basis swap
- bond forward
- bullion option
- bullion swap
- bullion trade
- buy/sell-back transaction
- cap transaction
- collar transaction
- commodity index transaction
- commodity swap
- contingent credit default swap
- credit default swap option
- credit default swap
- credit derivative transaction on asset-backed securities
- credit spread transaction
- cross currency rate swap
- currency option
- economic statistic transaction
- emissions allowance transaction
- equity forward
- equity index option
- equity option
- equity swap
- floor transaction
- foreign exchange transaction
- forward rate transaction
- fund option transaction
- fund forward transaction
- interest rate option
- interest rate swap
- longevity/mortality transaction
- physical commodity transaction
- property index derivative transaction
- repurchase transaction
- securities lending transaction
- swap deliverable contingent credit default swap
- total return swap
- weather index transaction
Schedule
The Schedule is where the parties make their elections, customised representations, and any other amendments to the form of the ISDA that they want to apply across the board. Thus the Schedule is the heart of the ISDA negotiation. It is famously divided into five parts, of which you will spend most of your time in Parts 1 and 5.
Part 1 - Termination Provisions
Part 2 - Tax Representations (Schedule)
Part 3 - Agreement to Deliver Documents
Part 4 - Miscellaneous (Schedule)
Part 5 - Other Provisions