Default under specified transaction

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For the ISDA Master Agreement provision specifically see Default Under Specified Transaction

A default under specified transaction, or “DUST”, is a concept native to the ISDA Master Agreement but which you may see in other master trading documentation (but not a 2010 GMSLA or a Global Master Repurchase Agreement). DUST gives a fellow the right to terminate the master trading agreement upon a default by her counterparty under one or more transactions documented under different Master Agreements between you and that same counterparty.

Compare and contrast with cross default, which allows you to terminate your master agreement when the counterparty defaults under indebtedness to a third party (not you).

See also

• Cross default
• Default Under Specified Transaction (ISDA)
• Event of default