Undead ISDA: Difference between revisions

{{a|isda|[[File:William Blake - The Day of Judgment.jpg|450px|thumb|center|Uh-oh: honey — did I check the residual {{isdaprov|Cross Default}} risk on that old [[87 ISDA]]?]]}}The status of every defunct [[ISDA]] master agreement, once all transactions have terminated, whether through the exigencies of a stressed [[close-out]], or simply through the [[entropy]] and general lassitude of a modern life in which many former devotees of the ISDA creed grew bored, or adversely regulated, and gave up on swaps, once the last live ones have all rolled off.

For while you can terminate a ''{{isdaprov|Transaction}}'' under an {{isdama}} the printed form does not  envisage one terminating the [[master agreement]] itself. It has no general [[No-fault termination|termination on notice]] provisions so, unless you and your counterparty specifically confect to agree one, a discarded ISDA arrangement will lie there mute, transfixed, plastered to the infinite like some ghostly figure frozen at the [[event horizon]] of a [[black hole]] for ever — surviving, indefinitely, some believe even beyond the expiry of the very entities whose trading relationship it once described.

Some would say this is a non-point, as un-alive as the ISDA that presents it. For an ISDA under which there are no extant transactions carries no material financial obligations. But that {{isdaprov|Cross Default}} clause... ''could it'' ... ?  

But even they who so haughtily wave concerns away yet still go quiet and will speak not of the [[Dark Lord]].