1985 ISDA Code of Standard Wording, Assumptions and Provisions for Swaps

ISDA Anatomy™ →Go uptown 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 1985 ISDA Code, properly styled as the —

Code of

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Standard

Wording,

Assumptions and

Provisions for

Swaps

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1985 Edition

I mean check that baby out; did you see what they did there??? It's a goddamn acrostic! Whoever heard of playfulness in the documentation of derivatives? The 1985 ISDA Code is the first ever attempt, by the Children of the Woods, progenitors of the First Men, those valiant but somehow feral predecessors to the latter-day crusading knights of ISDA’s crack drafting squad™, to make flesh and blood the idea of an ISDA Master Agreement.

And we know, from that telltale acrostic, that these were not the humdrum, process-oriented, detail-obsessed boxwallahs who now run ISDA. These were capricious, flipsy, okay maybe a bit bookish rebels, drunk on the excitement of contracts for difference, standing on the threshold of a brave new adventure. If only they could have seen where it would all end out.

For all its paleontological significance the 1985 ISDA Code is a barebones thing indeed: Events of Default and Termination Events are there ... none. Parties had to put them in the confirmation. Even failure to pay.

So, no netting, no single agreement — which kind of figures, since BCB only hit on the idea of granting capital relief for netting arrangements in 1986 — no Section 2(a)(iii) —

See also

• ISDA Master Agreement and all its variations

• 1987 ISDA
• 1992 ISDA
• 2002 ISDA
• 2008 ISDA