ISDA Master Agreement

ISDA Anatomy™ incorporating our exclusive ISDA in a Nutshell™ Go Premium {{{2}}} Index: Click ᐅ to expand: ISDA Navigation 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 • 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 • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • FM • Tax Event • TEUM • CEUM • ATE • Early Termination 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off 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 Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Foundational concepts

• What is a swap, how does it work? – founding concepts:
• Underliers
• “synthetic exposure”
• Mark-to-market value
• Replacement cost
• Hedging

Architecture

• Structure: How it hangs together – Master/Schedule/CSA/Master Confirmations/Confirms
• Big drafting issues
  • Valuation and Calculation: of transactions – differing standards between asset classes
  • Credit:
    • Events of Default and Termination Events, the differences between them
    • Cross Default and inadvertent solvency risks
    • Additional Termination Events that will be specific to counterparties
    • Credit Support Providers,
    • {{isdaprov|Specified Entities
  • Close out:

 How close out works  Netting and set off o Netting  The importance of close-out netting  Netting opinions  Counterparty types  Automatic Early Termination  Collateral  Multibranch parties o Collateral: How the CSA works  Title transfer versus pledge  “Equivalent” credit support  Independent Amounts  Changes wrought by regulations for variation margin  Valuation of collateral and exposure values o Tax representations: Hire Act, FACTCA, payer and payee representations o Notices and communications o Definitions booklets - Process issues o Capacity and authority o Onboarding and AML o Static data and netting flags o Who are the stakeholders?  Credit  Treasury  Legal  Trading  Sales

See also

• ISDA Anatomy
• 1992 ISDA
• 2002 ISDA