82,891
edits
1987 ISDA Interest Rate and Currency Exchange Agreement: Difference between revisions
Jump to navigation
Jump to search
1987 ISDA Interest Rate and Currency Exchange Agreement (view source)
Revision as of 11:58, 10 August 2012
, 10 August 2012no edit summary
Amwelladmin (talk | contribs) |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 3: | Line 3: | ||
Replaced by the {{1992isda}}, and then the {{2002isda}}. | Replaced by the {{1992isda}}, and then the {{2002isda}}. | ||
==Differences between 1987 and 1992 Master Agreements== | |||
the {{1992ma}} was introduced principally, to: | |||
*'''Expand range of products covered''': Expand beyond [[interest rate derivatives]] and [[currency derivatives]] and promote the benefit of [[close-out netting]] | *'''Expand range of products covered''': Expand beyond [[interest rate derivatives]] and [[currency derivatives]] and promote the benefit of [[close-out netting]] | ||
*'''Market Developments''': Reflect legal developments between 1987 and 1992. | *'''Market Developments''': Reflect legal developments between 1987 and 1992. | ||
===Significant Changes=== | |||
*'''Physcial Delivery''': Permits [[physical delivery]] | *'''Physcial Delivery''': Permits [[physical delivery]] | ||
*'''{{isdaprov|Settlement Amount}}s''': Introduices greater flexibility for determining {{isdaprov|Settlement Amount}}s upon termination of {{isdaprov|Transactions}} (the {{isdaprov|Loss}}, {{isdaprov|Market Quotation}}, {{isdaprov|First Method}} and {{isdaprov|Second Method}} regimes were introduced, subsequently refined by the {{2002ma}} into {{isdaprov|Close-out Amount}}). | *'''{{isdaprov|Settlement Amount}}s''': Introduices greater flexibility for determining {{isdaprov|Settlement Amount}}s upon termination of {{isdaprov|Transactions}} (the {{isdaprov|Loss}}, {{isdaprov|Market Quotation}}, {{isdaprov|First Method}} and {{isdaprov|Second Method}} regimes were introduced, subsequently refined by the {{2002ma}} into {{isdaprov|Close-out Amount}}). | ||
| Line 18: | Line 16: | ||
there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | there are some others - a helpful guide can be found [http://www.google.co.uk/url?sa=t&rct=j&q=difference%20between%201987%20isda%20and%201992%20isda&source=web&cd=6&ved=0CFYQFjAF&url=http%3A%2F%2Fwww.otcguide.com.au%2Fotcwr%2Fpdf%2F1573077_6.pdf&ei=3uwkUOSYOdOChQf71IGYCw&usg=AFQjCNGsjOd2eJW8xzQhB-xeglU_-EUuCA here] | ||
== | ==Close-out Netting under the {{1987ma}}== | ||
Generally speaking: | Generally speaking: | ||
*'''Physical Settlement''': given that the {{1987ma}} doesn't include physical delivery provisions, if you have any physically settled trades under it, you'd need to also add boilerplate language in the master to ensure the close-out mechanic worked for them, including consequential amendments to Sections 5 and 6 of the 1987 master. | *'''Physical Settlement''': given that the {{1987ma}} doesn't include physical delivery provisions, if you have any physically settled trades under it, you'd need to also add boilerplate language in the master to ensure the close-out mechanic worked for them, including consequential amendments to Sections 5 and 6 of the 1987 master. | ||