ISDA Credit Support Annex: Transfer—English law
ISDA Credit Support Annex: Transfer—English law

The following Banking & Finance guidance 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 nature of the English law Annex
  • Advantages and disadvantages of a title transfer approach
  • Enforcement of an English law Annex
  • ISDA 2016 Credit Support Annex for Variation Margin (VM) (Title Transfer—English Law)
  • Financial collateral arrangements
  • Useful documents from ISDA

English law ISDA credit support documents

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

  3. 1995 ISDA Credit Support Deed (Security Interest—English Law) (the Deed)

The three 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.

Documentation structure of the English law Annex

The English law Annex—part of the schedule to the master agreement

The English law Annex forms part of the schedule to the master agreement and these three documents therefore form one agreement.

The English law Annex constitutes a