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On the other hand, they can complicate a document by obliging the reader to flip back and forth to find what the definitions mean, especially where the definitions are embedded in the body of the agreement and not in a definitions section. And let’s face it: if you work in global markets and you don’t know what [[ERISA]] is, you really need to get your coat. | On the other hand, they can complicate a document by obliging the reader to flip back and forth to find what the definitions mean, especially where the definitions are embedded in the body of the agreement and not in a definitions section. And let’s face it: if you work in global markets and you don’t know what [[ERISA]] is, you really need to get your coat. | ||
Dear old {{tag|ISDA}} ''loves'' definitions, and you will be obliged to consult one or several definitions booklets, often with conflicting definitions, as well as the definitons in {{isdama}}, the {{isdaprov|Schedule}} and the {{isdaprov|Confirmation}} to work out what a capitalised expression might mean | Dear old {{tag|ISDA}} ''loves'' definitions, and you will be obliged to consult one or several definitions booklets, often with conflicting definitions, as well as the definitons in {{isdama}}, the {{isdaprov|Schedule}} and the {{isdaprov|Confirmation}} to work out what a capitalised expression might mean. | ||
===The [[JC]]’s rules of thumb=== | ===The [[JC]]’s rules of thumb=== | ||
'''Where''': Generally, put definitions at the ''end''. Embed them in the body of the agreement where they are used only in a single clause. Then, it is easier to see the definition where it first appears in context than have to flip to the back of the document. <br> | '''How many''': ''As few as possible.'' | ||
'''What''': Use definitions | '''Where''': Generally, put definitions at the ''end''. Embed them in the body of the agreement ''only'' where they are used ''only'' in a single clause. Then, it is easier to see the definition where it first appears in context than have to flip to the back of the document. <br> | ||
* | '''What''': Use definitions: | ||
*To save repetition: An expression which is (a) wordy and (b) appears a LOT in the agreement. If it only appears twice or three times, why define it? | |||
*To create a new technical expression that doesn’t otherwise have any meaning | |||
*To gather together disparate concepts into a single expression and it would not otherwise be obvious. | *To gather together disparate concepts into a single expression and it would not otherwise be obvious. | ||
'''When not to use definitions''': When the defined term is obvious. Everyone knows that the [[EU]] means the [[European Union]]. Everyone knows [[MiFID 2]] means. Everyone (right?) knows what [[ERISA]] means. | '''When not to use definitions''': When the defined term is obvious. Everyone knows that the [[EU]] means the [[European Union]]. Everyone knows [[MiFID 2]] means. Everyone (right?) knows what [[ERISA]] means. | ||