ISDA definitions
ISDA definitions

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

  • ISDA definitions
  • ISDA definitions and the ISDA documentation framework
  • ISDA documentation framework
  • ISDA confirmations and ISDA definitions
  • Purpose of the ISDA definitions
  • The key ISDA definitions
  • Incorporating the ISDA definitions into the trade documentation
  • Incorporating the ISDA definitions into the confirmation or schedule?
  • Future updates to the ISDA definitions—automatically incorporated?
  • Varying the ISDA definitions
  • More...

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 ISDA confirmations. A confirmation may incorporate certain defined terms by reference to booklets published by ISDA which are known as the ISDA definitions. Various ISDA definitions booklets have been published and are to be selected for incorporation into a confirmation depending on the type of derivative transaction involved.

This Practice Note explains:

  1. how the ISDA definitions fit into the ISDA documentation framework

  2. the purpose of ISDA definitions

  3. the key ISDA definitions, and

  4. key points to consider when incorporating ISDA definitions into trade documentation

ISDA definitions 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 master agreement are:

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

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

  2. schedule to the master agreement

  3. credit support document (optional), and

  4. confirmation

For more information, see:

  1. Derivatives: ISDA documentation framework, and

  2. ISDA master agreements and schedules: key provisions

ISDA confirmations and ISDA definitions

The appropriate ISDA definitions

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