Template:Isda Preamble summ
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ISDA architecture
The legal documentation for an ISDA swap transaction comes in three main parts, but — of course — there are complications for the legal eagles to get their iatrogenic talons into. But for now, let’s start at the beginning.
The ISDA Master Agreement
The ISDA Master Agreement is the basic framework which applies to anyone who touches down on planet ISDA. There are three existing versions:
- the state-of-the-art 2002 ISDA;[1]
- the still-popular-with-traditionalists-and-Americans 1992 ISDA, and
- the all-but-retired-but-don’t-forget-there-are-still-soldiers-in-the-Burmese-jungle 1987 ISDA[2]
- the interesting-only-for-its-place-in-the-fossil-record-and-witty-acrostic 1985 ISDA Code; and
- there isn’t a 2008 ISDA. That’s a little running JC in-joke.[3]
All three versions have a tri-partite form: Pre-printed Master, {{{{{1}}}|Schedule}} and — well, this is controversial: for is it, or is it not, part of the ISDA Master Agreement? — Credit Support Annex.
- ↑ There is no such thing as a 2008 ISDA. That was a joke on our part.
- ↑ Seriously: proceed with caution with one of these. 1987 ISDAs don’t have a lot of safety features a modern derivatives counterparty relies on, so only for real specialists and weirdos. Think of it like flying a spitfire rather than a 737 Max. Um, okay, bad metaphor.
- ↑ Talking to yourself might not be the first sign of madness, but having in-jokes with yourself might be.