An introduction to the 2014 ISDA Credit Derivatives Definitions
An introduction to the 2014 ISDA Credit Derivatives Definitions

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • An introduction to the 2014 ISDA Credit Derivatives Definitions
  • Why are ISDA definitional booklets needed?
  • What is the background to the 2014 ISDA Credit Derivatives Definitions?
  • What are the main changes made by the 2014 ISDA Credit Derivative Definitions?
  • ISDA 2014 Credit Derivatives Definitions Protocol

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Key issues for derivatives transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

Why are ISDA definitional booklets needed?

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and Derivatives Association, Inc. (ISDA). The key ISDA document which sets out the commercial terms of a particular trade are set out in a confirmation. For more information, see Practice Note: ISDA confirmations. A confirmation may incorporate certain defined