Rate of exchange - ISDA Provision

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2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual™

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Section rate of exchange in a Nutshell

Use at your own risk, campers!
Rate of exchange” includes any premiums or exchange costs of buying or converting into the Contractual Currency.

Full text of Section rate of exchange

Rate of exchange” includes, without limitation, any premiums and costs of exchange payable in connection with the purchase of or conversion into the Contractual Currency.

Related agreements and comparisons

Related Agreements
Click here for the text of Section rate of exchange in the 1992 ISDA
Template:Isdadiff rate of exchange

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Content and comparisons

Template:M comp disc 2002 ISDA rate of exchange



You could scarcely ask for a less necessary definition. In their hearts, you sense ISDA’s crack drafting squad™ knew this, for they couldn’t find it in themselves to even capitalise it. In the 1992 ISDA, rate of exchange didn’t even make the Definitions section, but was half-heartedly tacked onto the end of a clause halfway through the Contractual Currency section. It made it into the 2002 ISDA’s Definitions Section only because it somehow wangled its unecessary way into the new Set-off clause (Section 6(f) of the 2002 ISDA).

But if two guiding principles of defining terms are (i) don’t, for terms you only use once or twice, and (ii) don’t, if the meaning of the thing you are considering defining is patently obvious — then “rate of exchange” comprehensively fails the main criteria of a good definition.

The JC’s general view is, all other things being equal, to ease comprehension, eschew definitions.

Also, could they not have used “exchange rate”, instead of rate of exchange?


General discussion

Template:M gen 2002 ISDA rate of exchange


See also

Template:M sa 2002 ISDA rate of exchange