Transaction - ISDA Provision

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ISDA Anatomy

incorporating our exclusive ISDA in a NutshellTM

In a NutshellTM Section Transaction:

Transaction” is defined in the Preamble.
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2002 ISDA full text of Section Transaction:

Transaction” has the meaning specified in the preamble.
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Click here for the text of Section Transaction in the 1992 ISDA

Resources Wikitext | Nutshell wikitext | 1992 ISDA wikitext | 2002 vs 1992 Showdown | 2006 ISDA Definitions | 2008 ISDA
Navigation Preamble | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14
Events of Default: 5(a)(i) Failure to Pay or Deliver5(a)(ii) Breach of Agreement5(a)(iii) Credit Support Default5(a)(iv) Misrepresentation5(a)(v) Default Under Specified Transaction5(a)(vi) Cross Default5(a)(vii) Bankruptcy5(a)(viii) Merger without Assumption
Termination Events: 5(b)(i) Illegality5(b)(ii) Force Majeure Event5(b)(iii) Tax Event5(b)(iv) Tax Event Upon Merger5(b)(v) Credit Event Upon Merger5(b)(vi) Additional Termination Event

What exactly counts as a Transaction under an ISDA Master Agreement is a matter of some moment, because it will determine what you need to take into account when applying close-out netting, and (unless you’ve specified a narrower range of Covered Transactions) the values you need to calculate when making collateral calls under your credit support annex.

Unusually, for a document so outrageously verbose in most other respects, the ISDA Master Agreement has little to say on the subject, the 1992 ISDA leaving it entirely to the preamble:

... one or more transactions (each a “Transaction”) that are or will be governed by this Master Agreement.

And the 2002 ISDA not going much further.

...Transaction” has the meaning specified in the preamble.

The 2002 ISDA Equity Derivatives Definitions also define “Transaction”, to no apparent point.

Netting

These are the types of transaction that are contemplated for netting purposes in the ISDA opinion (for England)