Transaction - ISDA Provision

ISDA Anatomy™ incorporating our exclusive ISDA in a Nutshell™ In a Nutshell™ Section Transaction: “Transaction” is defined in the Preamble. view template 2002 ISDA full text of Section Transaction: “Transaction” has the meaning specified in the preamble. view template 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 | JC’s ISDA code project 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 Deliver • 5(a)(ii) Breach of Agreement • 5(a)(iii) Credit Support Default • 5(a)(iv) Misrepresentation • 5(a)(v) Default Under Specified Transaction • 5(a)(vi) Cross Default • 5(a)(vii) Bankruptcy • 5(a)(viii) Merger without Assumption • Termination Events: 5(b)(i) Illegality • 5(b)(ii) Force Majeure Event • 5(b)(iii) Tax Event • 5(b)(iv) Tax Event Upon Merger • 5(b)(v) Credit Event Upon Merger • 5(b)(vi) Additional Termination Event Index: Click ᐅ to expand: 2002 ISDA 1992 ISDA 2002 ISDA - New Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter. Posh version of this page

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)

• Basis swap
• bond forward
• bullion option
• bullion swap
• bullion trade
• buy/sell-back transaction
• cap transaction
• collar transaction
• commodity index transaction
• commodity swap
• contingent credit default swap
• credit default swap option
• credit default swap
• credit derivative transaction on asset-backed securities
• credit spread transaction
• cross currency rate swap
• currency option
• economic statistic transaction
• emissions allowance transaction
• equity forward
• equity index option
• equity option
• equity swap
• floor transaction
• foreign exchange transaction
• forward rate transaction
• fund option transaction
• fund forward transaction
• interest rate option
• interest rate swap
• longevity/mortality transaction
• physical commodity transaction
• property index derivative transaction
• repurchase transaction
• securities lending transaction
• swap deliverable contingent credit default swap
• total return swap
• weather index transaction