Specified Transaction - 1992 ISDA Provision
1992 ISDA Master Agreement
Section Specified Transaction in a Nutshell™
Full text of Section Specified Transaction
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- Specifically to include things we have thunk of since 1992, such as futures, credit derivatives, repo, stock lending, weather derivatives, NDFs, transactions executed under terms of business; and
- Generally to include similar transactions that are presently or in future become common in the financial markets — a neat a catch-all, designed to include any future pieces of financial wizardry (and/or mass destruction) that have not been thunk of just yet.
We are going to go out on a limb here and say that little parenthetical “(including an agreement with respect thereto)” is, if not deliberately designed that way, is at least calculated to capture the Credit Support Annex which, yes, is a Transaction under an ISDA Master Agreement but no, is not really a swap or anything really like one. There is enough chat about Credit support Providers (yes, yes, the counterparty itself is of course not a Credit support Provider) to make us think, on a fair, large and liberal interpretation, that a default under the CSA to a swap Transaction is meant to be covered.
- Oh, look! Anyone remember Enron? Anyone feeling nostalgic for the good old days when men were men, fraud was fraud, financial accountants were profit centres and anything seemed possible? No?
- In the sense of being “likely”.