1987 ISDA Interest Rate and Currency Exchange Agreement: Difference between revisions

{{a|isda|[[File:Musket.jpg|450px|thumb|center|An unloaded [[87 ISDA]]]]}}Well-and-truly out-of-date version of the {{isdama}}, replaced first by the {{1992isda}} and then the {{2002isda}}, the {{1987isda}} is nonetheless useful for forensic archaeologists interested to know how the state-of-the-art version got to be how it is today.<ref>There are the odd [[Fossil record|fossils]] who still insist on using it, though most of those have long-since been taken out and shot, a process now happening to disciples of the {{1992ma}}.</ref>  

Nineteen eighty-seven was a different world; the very first swap transaction<ref>Between IBM and the World Bank — see [[swap history]] for more.</ref> was only consummated in 1981. The swap master agreement was a nascent idea to streamline the documentation between counterparties, and to capture this nascent idea of [[close-out netting]], but was basically predicated on the legal precepts of banking facilities. An {{isdama}} is not, of course, any kind of banking facility: certainly not if it is [[Variation margin|daily-margined]], as is now required by regulation for most of the 600 trillion of swaps transacted annually.