ISDA confirmations

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

  • ISDA confirmations
  • Confirmations and the ISDA documentation framework
  • ISDA documentation framework
  • Dealing with inconsistencies in the ISDA documentation framework
  • Confirmations: part of the master agreement
  • A confirmation of the economic terms of a trade
  • The confirmation document
  • Versions of confirmations
  • Long-form confirmations
  • Incorporation of ISDA definitions
  • More...

ISDA confirmations

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and Derivatives Association, Inc. (ISDA).

A confirmation sets out the commercial terms of a particular transaction.

This Practice Note explains:

  1. how confirmations fit into the ISDA documentation framework

  2. the purpose of confirmations and what they contain

  3. the confirmation documentation, and

  4. the legal effect of confirmations

Confirmations and the ISDA documentation framework

ISDA documentation framework

The ISDA documentation framework for derivatives involves layers of documentation. The key layers of documentation for a trade under the ISDA documentation framework are:

  1. master agreement—the key forms of which are:

    1. 1992 ISDA Master Agreement (multicurrency, cross border form) (the 1992 Master Agreement), and

    2. 2002 ISDA Master Agreement (multicurrency, cross border form) (the 2002 Master Agreement)

  2. schedule to the master agreement

  3. credit support document (optional)—credit support takes the form of:

    1. a credit support annex which forms part of the schedule, or

    2. a credit support deed which is a stand alone document

  4. confirmations

For more information, see Practice Notes:

  1. Derivatives: ISDA documentation framework

  2. ISDA master agreements and schedules: key provisions

  3. ISDA Credit Support Annex: Transfer—English law, and

  4. ISDA Credit Support Deed: Security interest—English law

Dealing with inconsistencies in the ISDA documentation framework

Where there is an inconsistency between a confirmation and other documents in the ISDA documentation framework:

  1. the terms of the confirmation prevail over the schedule (as supplemented

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