ISDA Credit Support Annex: Transfer—English law

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

  • ISDA Credit Support Annex: Transfer—English law
  • English law ISDA credit support documents
  • Documentation structure of the English law Annex
  • The English law Annex—part of the schedule to the master agreement
  • Dealing with inconsistencies in the documentation
  • Using an English law Annex with the 2002 form of master agreement
  • The nature of the English law Annex
  • An outright transfer of title—not a security interest
  • Recharacterisation risk—outright transfer or security interest?
  • Advantages and disadvantages of a title transfer approach
  • More...

ISDA Credit Support Annex: Transfer—English law

English law ISDA credit support documents

There are four forms of credit support documentation published by the International Swaps and Derivatives Association, Inc (ISDA) which are governed by English law. These are:

  1. 1995 ISDA Credit Support Annex (Bilateral Form—Transfer) (the English law Annex)

  2. 2013 ISDA Standard Credit Support Annex (Title Transfer—English Law) and the 2014 ISDA Standard Credit Support Annex (Title Transfer—English Law) (the English Law SCSAs)

  3. 2016 ISDA Credit Support Annex for Variation Margin (VM) (Title Transfer—English Law) (the English law VM Annex), and

  4. 1995 ISDA Credit Support Deed (Security Interest—English Law) (the Deed)

The four types of credit support documentation reflect two different legal structures. Whilst the English law Annex requires the outright transfer of cash and securities (the 'title transfer' approach), the Deed uses a charge based approach. The Deed is discussed in more detail in Practice Note: ISDA Credit Support Deed: Security Interest—English law. In general the English law Annex is much more widely used than the Deed. The English law VM Annex is discussed in more detail in ISDA 2016 Credit Support Annex for Variation Margin (VM) (Title Transfer—English Law)—this is only to be used in certain specified circumstances. The English Law SCSAs, introduced by ISDA as an alternative to the English law Annex, seek to standardise market practice regarding embedded optionality in pre-existing Credit Support

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