The International Swaps and Derivatives Association, Inc., (ISDA), publishes two versions of its commonly used master`s contract, which sets out the terms and conditions for OTC derivatives transactions. They are: the masteragrement isda is a framework agreement that defines the terms and conditions between parties who wish to trade over-the-counter derivatives. There are two main versions that are still widely used on the market: the 1992 ISDA Master Agreement (Multicurrency – Cross Border) and the 2002 ISDA Master Agreement. In 1992, ISDA published two forms of master`s convention: the 1992 Masteragreement (multi-currency, cross-border) and the 1992 Masteragrement (single currency, single jurisdiction). The 2002 Masteragrement was designed to update the 1992 Masteragrement, taking into account changing market developments and changing market practices. The 2002 Masteragrement is much more complicated than the 1992 Master For remarks on these changes, see questions and answers: Can I amend my 1992 ISDA Executive Contract to obtain information on the 1992 Master Contract and the 2002 Masteragrement and the schedules associated with it in general, see practice: ISDA Contracts and Plans – important provisions. The main contract and schedule contain standard provisions forming a kind of boiler platform between the two counterparties. The most important thing is to remember that the ISDA executive contract is a clearing agreement and that all transactions are interdependent. Therefore, a default in a transaction counts by default among all transactions. Point 1 (c) describes the concept of a single agreement and is of paramount importance as it forms the basis for network closures. When a standard event occurs, all transactions are completed without exception. The concept of out-of-gap clearing prevents a liquidator from making “cherry pickings,” i.e. making payments on profitable transactions for his bankrupt client and refusing to do so in the case of an unprofitable customer.
It is the contractual framework in which repurchase/sale transactions are carried out and contractually obliges both parties to apply a netting in the event of a late payment for all transactions and guarantees in progress. As of December 31, 2016, the group had signed the CSA part of the ISDA management contract with 25 counterparties (compared to 24 in 2015). isDA 2002 Master Agreement (Master Agreement 2002) In most cases, the parties perform a CSA in conjunction with the ISDA master contract. Simplified Chinese translation of the ISDA Master Contract Manual When parties enter into individual transactions, confirmation (either on paper or electronic) is established, detailing the terms of this particular trade. Each confirmation refers to the ISDA mastery agreement. All transactions are then covered by the terms of the agreement.