New Isda Master Agreement
The International Swaps and Derivatives Association (ISDA) has announced the release of the 2002 ISDA Master Agreement, which will replace the previous version of the Master Agreement that was released in 1992.
The new ISDA Master Agreement includes several important changes, including a number of provisions that address issues that have arisen in the derivatives markets since the previous version of the agreement was released.
One significant change is the inclusion of a new section that deals with credit events, such as defaults and bankruptcies. This section clarifies the process for determining whether a credit event has occurred and how the parties involved should proceed in the event of such an event.
Another important change is the inclusion of provisions that address the use of electronic trading platforms and other forms of electronic communication. This section establishes rules for electronic trading and communication, as well as guidelines for how such platforms should be used in the context of the ISDA Master Agreement.
The new ISDA Master Agreement also includes updated definitions for a number of key terms, including hedging, termination, and force majeure. These updated definitions reflect changes in the derivatives markets and current industry practices.
Overall, the new ISDA Master Agreement represents a significant step forward in the world of derivatives trading. Its provisions address a number of important issues that have arisen in the markets over the past decade, and it provides a clear and comprehensive framework for parties to use when entering into derivatives transactions.
For those involved in derivatives trading, the new ISDA Master Agreement is an important development, and it is essential to stay up-to-date on the latest changes and updates in order to remain competitive and successful in today`s fast-paced markets.