The ISDA Master Agreement 2012: A Missed Opportunity?
28(8) Journal of International Banking Law and Regulation, pp.12-28, 2013
Posted: 26 Jun 2013 Last revised: 9 Oct 2013
Date Written: July 5, 2013
Abstract
This article provides an overview of the operating provisions and negotiating complexity of the 1992 and 2002 ISDA Master Agreements, as well as a critical analysis of legal developments affecting the ISDA Master Agreement framework. In principle it argues these accrued ISDA Master Agreement complexities, combined with recent legal developments, substantiate the need for simplification, streamlining, increased efficiencies and reduced costs, regarding ISDA Master Agreement negotiations. Consequently, since ISDA is the global trade association for OTC derivatives, in theory an updated 2012 ISDA Master Agreement represents a significant missed opportunity by ISDA for achieving all of these objectives. The article therefore suggests new substantive operating provisions which an updated 2012 ISDA Master Agreement should incorporate.
Keywords: Contracts, Currencies, Default, Derivatives, Insolvency, Netting, Master agreements, Over-the-counter market, Swap agreements
Suggested Citation: Suggested Citation
