ISDA and FIA Cleared Derivatives Execution Agreement and Addendum
Produced in partnership with Assia Damianova of Cadwalader Wickersham & Taft
ISDA and FIA Cleared Derivatives Execution Agreement and Addendum

The following Banking & Finance guidance note Produced in partnership with Assia Damianova of Cadwalader Wickersham & Taft provides comprehensive and up to date legal information covering:

  • ISDA and FIA Cleared Derivatives Execution Agreement and Addendum
  • Role of the Agreement
  • Structure of the Agreement
  • The Addendum
  • FIA Indirect Clearing Terms

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.

Clearing requirements have brought about significant changes to derivatives documentation. While uncleared derivatives continue to be governed by an International Swaps and Derivatives Association (ISDA) Master Agreement and a Credit Support Annex, cleared derivatives require further documentation such as: (i) clearing agreements, (ii) give-up agreements, and (iii) collateral transformation agreements.

The derivatives industry has created standard forms to assist with the documentation burden arising from putting clearing