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Honestly, if I had known how much time I was going to spend with the damn thing I would have paid a lot more attention to it in the first place. | Honestly, if I had known how much time I was going to spend with the damn thing I would have paid a lot more attention to it in the first place. | ||
==== | =====The {{isdama}}===== | ||
The {{isdama}} is the basic framework that applies to anyone who touches down on planet [[ISDA]]. Three versions are, more or less, still in use: | |||
======{{2002ma}}====== | |||
The still, after all these years, state-of-the-art '''{{2002ma}}'''. This is the most popular version — it took industry participants and ''awfully'' long time to get comfortable with it, despite its innovations being largely sensible, but now most of the European and Asian markets trades on the {{2002ma}}. | |||
======{{1992ma}}====== | |||
The first really global, earth-shaking version of the ISDA master was the 1992. This is still popular with traditionalists, those who can’t abide a one-day grace period for Failure to Pay or Delivery, and Americans. The majority of the American market is still on the 1992, though many participants have heavily modified their {{1992ma}}s to take in most of the innovations of the {{2002 ma}}, to the point where the refusal to budge looks to be largely down to the colossal weight of institutional inertia, of just basic bloody-mindedness. | |||
======{{1987ma}}====== | |||
The {{1987ma}} is all but a dead letter now, but just as there are still soldiers in the Burmese jungle fighting the Second World War, through inattention or truculence, there may be pockets, embedded deep in the impassable hinterlands of structured finance who still cling to the 1987, notwithstanding its well-recognised shortcomings. If you come across one of these, proceed with caution: {{1987ma}}s don’t have a lot of safety features a modern derivatives counterparty relies on, so are only for real die-hard vinyl junkies and weirdos.</ref> | |||
All three versions have a tri-partite form: '''Pre-printed Master''', '''{{{{{1}}}|Schedule}}''', {{{{{1}}}|Confirmation}} and — well, ''this'' is controversial: for is it, or is it not, part of the {{isdama}}? — '''[[Credit Support Annex]]'''. | |||
=====Non-functional versions===== | |||
There are two non-functional versions: | |||
======{{1985ma}}====== | |||
The interesting-only-for-its-place-in-the-fossil-record-and-witty-acrostic {{1985ma}}. | |||
======{{2008ma}}====== | |||
The “this-fixes-everything, [[Blockchain|on-chain]], [[Smart contract|smart]], [[artificially intelligent]]” {{2008ma}} was introduced during, and tragically destroyed by, the [[Global Financial Crisis]]. | |||
Oh, all right there ''isn’t'' a '''{{2008ma}}'''. Never was. That’s a little running [[JC]] in-joke.<ref>Talking to yourself might not be the first sign of madness, but having ''in-jokes'' with yourself might be.</ref> | |||
====Industry associations==== | |||
=====Sell-side===== | =====Sell-side===== | ||
ISDA, which publishes the ISDA, ''was'' the “International Swap Dealers Association''s'', Inc.” — interesting plural, that — but in any case, outwardly a ''[[sell-side]]'' industry association. Sometime between 1992 and 2002, it rebranded itself as the “International Swaps and Derivatives Association, Inc.”: singular, at the same time more unitary and more inclusive sounding, but still in spirit the same old ISDA, stake-held predominantly by the largest broker-dealers on the face of the Earth. | ISDA, which publishes the ISDA, ''was'' the “International Swap Dealers Association''s'', Inc.” — interesting plural, that — but in any case, outwardly a ''[[sell-side]]'' industry association. Sometime between 1992 and 2002, it rebranded itself as the “International Swaps and Derivatives Association, Inc.”: singular, at the same time more unitary and more inclusive sounding, but still in spirit the same old ISDA, stake-held predominantly by the largest broker-dealers on the face of the Earth. | ||