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Replaced by the {{1992isda}}, and then the {{2002isda}}. | Replaced by the {{1992isda}}, and then the {{2002isda}}. | ||
==Differences between 1987 and 1992 Master Agreements== | |||
the {{1992ma}} was introduced principally, to: | |||
*'''Expand range of products covered''': Expand beyond [[interest rate derivatives]] and [[currency derivatives]] and promote the benefit of [[close-out netting]] | *'''Expand range of products covered''': Expand beyond [[interest rate derivatives]] and [[currency derivatives]] and promote the benefit of [[close-out netting]] | ||
*'''Market Developments''': Reflect legal developments between 1987 and 1992. | *'''Market Developments''': Reflect legal developments between 1987 and 1992. | ||
===Significant Changes=== | |||
*'''Physcial Delivery''': Permits [[physical delivery]] | *'''Physcial Delivery''': Permits [[physical delivery]] | ||
*'''{{isdaprov|Settlement Amount}}s''': Introduices greater flexibility for determining {{isdaprov|Settlement Amount}}s upon termination of {{isdaprov|Transactions}} (the {{isdaprov|Loss}}, {{isdaprov|Market Quotation}}, {{isdaprov|First Method}} and {{isdaprov|Second Method}} regimes were introduced, subsequently refined by the {{2002ma}} into {{isdaprov|Close-out Amount}}). | *'''{{isdaprov|Settlement Amount}}s''': Introduices greater flexibility for determining {{isdaprov|Settlement Amount}}s upon termination of {{isdaprov|Transactions}} (the {{isdaprov|Loss}}, {{isdaprov|Market Quotation}}, {{isdaprov|First Method}} and {{isdaprov|Second Method}} regimes were introduced, subsequently refined by the {{2002ma}} into {{isdaprov|Close-out Amount}}). | ||
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there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | ||
== | ==Close-out Netting under the {{1987ma}}== | ||
Generally speaking: | Generally speaking: | ||
*'''Physical Settlement''': given that the {{1987ma}} doesn't include physical delivery provisions, if you have any physically settled trades under it, you'd need to also add boilerplate language in the master to ensure the close-out mechanic worked for them, including consequential amendments to Sections 5 and 6 of the 1987 master. | *'''Physical Settlement''': given that the {{1987ma}} doesn't include physical delivery provisions, if you have any physically settled trades under it, you'd need to also add boilerplate language in the master to ensure the close-out mechanic worked for them, including consequential amendments to Sections 5 and 6 of the 1987 master. |