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Template:Isda Preamble summ: Difference between revisions
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Like all good stories, the ISDA starts with a {{ {{{1}}}|Preamble}}. Everyone, once, stares at that gnomic title and thinks, “okay, what the hell is ''this'' all about?” | Like all good stories, the ISDA starts with a {{ {{{1}}}|Preamble}}. Everyone, once, stares at that gnomic title and thinks, “okay, what the hell is ''this'' all about?” | ||
The {{{{{1}}}|preamble}} is just the loosener before things get properly going, and there is not a lot to see. It has not changed a lot between the {{1992ma}} and the {{2002ma}} (nor indeed, from the {{1987ma}}, except that the {{isdaprov|Single Agreement}} clause got promoted from a casual remark during the warm-up, in the {{1987ma}}, to the first searching delivery of the first over.<ref>Cricket metaphor. To our American readers, we would say sorry, except that we are not. There will be cricket analogies throughout.</ref> | |||
=====The {{isdama}}===== | =====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: | 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}}====== | ======{{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}}. | 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}}====== | ======{{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. Until quite recently a good part of the American market was still on the {{1992ma}} — most of those heavily modified to take in most of the innovations of the {{2002ma}}, 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. But the anecdotal sense we have is that even in New York, these days, the {{2002ma}} is the master agreement of choice for the discerning ninja. | 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. Until quite recently a good part of the American market was still on the {{1992ma}} — most of those heavily modified to take in most of the innovations of the {{2002ma}}, 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. But the anecdotal sense we have is that even in New York, these days, the {{2002ma}} is the master agreement of choice for the discerning ninja. | ||
======{{1987ma}}====== | ======{{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 {{1987ma}}, 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. | 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 {{1987ma}}, 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. | ||
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]]'''. | 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===== | =====Non-functional versions===== | ||
There are two non-functional versions: | There are two non-functional versions: | ||
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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> | 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==== | ====Industry associations==== | ||
=====Sell-side===== | =====Sell-side===== | ||
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The {{plainlink|https://www.managedfunds.org|MFA|}} (the Managed Funds Association) — not to be confused, by the way, with the Fund Management Association of Kenya — and<br> | The {{plainlink|https://www.managedfunds.org|MFA|}} (the Managed Funds Association) — not to be confused, by the way, with the Fund Management Association of Kenya — and<br> | ||
The {{plainlink|https://www.theia.org|AI||}} (the Investment Association). | The {{plainlink|https://www.theia.org|AI||}} (the Investment Association). | ||