Transaction - ISDA Provision

ISDA Anatomy™ incorporating our exclusive ISDA in a Nutshell™ Go Premium 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 Index: Click ᐅ to expand: ISDA Navigation The Varieties of ISDA Experience Subject 2002 (wikitext) 1992 (wikitext) 1987 (wikitext) Preamble Pre Pre Pre Interpretation 1 1 1 Obligns/Payment 2 2 2 Representations 3 3 3 Agreements 4 4 4 EODs & Term Events 5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • Tax Event • TEUM • CEUM • ATE • 5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • Tax Event • TEUM • CEUM • ATE • 5 Events of Default FTPD • Breach • CSD • Misrep • DUST • Cross Default • Bankruptcy • MWA Termination Events Illegality • FM • Tax Event • TEUM • CEUM • ATE • Early Termination 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off 6 Early Termination ET right on EOD • ET right on TE • Effect of Designation • Calculations • Set-off Transfer 7 7 7 Contractual Currency 8 8 8 Miscellaneous 9 9 9 Offices; Multibranch Parties 10 10 10 Expenses 11 11 11 Notices 12 12 12 Governing Law 13 13 13 Definitions 14 14 14 Schedule Schedule Schedule Schedule Termination Provisions Part 1 Part 1 Part 1 Tax Representations Part 2 Part 2 Part 2 Documents for Delivery Part 3 Part 3 Part 3 Miscellaneous Part 4 Part 4 Part 4 Other Provisions Part 5 Part 5 Part 5 Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

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