Tag: ISDA Master Agreement
The implications of implied terms
Implied contract terms-Where are we? When considering the terms that may be implied into contracts it is always important to note that courts are in no way inclined to ‘rewrite’ legal documents. There are very few situations where a term is deemed to be ‘implied’ under English Law. Indeed many of the relevant authorities on […]
ISDA Publishes Section 871(m) Protocol
On 2 November 2015, ISDA published the ISDA 2015 Section 871(m) Protocol (the “Protocol”), designed to enable parties to amend the terms of ISDA Master Agreements to reflect the requirements of Section 871(m) of the U.S. Internal Revenue Code. Broadly, from 1 January 2016, Section 871(m) will impose a 30% withholding tax on “dividend equivalent” […]
ISDA Master Agreement: Amendments to Section 2(a)(iii) Finalised
On 19 June 2014 ISDA published its long-awaited amendment to Section 2(a)(iii) of the ISDA Master Agreement. The amendment allows market participants to insert a time limit on the operation of Section 2(a)(iii) in circumstances where an Event of Default has occurred in relation to one of the parties, as detailed below. If an Event […]
Russia, Sanctions and the ISDA Master Agreement
On 23 April 2014 ISDA, in conjunction with A&O, discussed some of the potential effects that financial sanctions and trade limitations may have on transactions with Russian or Ukranian counterparties documented using either the ISDA 1992 or 2002 Master Agreements. In brief, the main issued addressed during the call were as follows: Illegality There is […]
SEFs and Footnote 195- does the CFTC hate trees?
Yesterday’s Risk magazine carries an alarming article, referring to a recent conference call between SEFs and the CFTC. The call’s purpose was to clarify footnote 195 of the core principles for SEFs, referring to confirmation checks on executed swaps. Participants were shocked to hear that for uncleared swaps, SEFs are expected to hold ISDA agreements […]
ISDA Master Agreement: First Peek at Section 2(a)(iii) Amendments – No Protocol Spotted Yet
On 31 January 2014, ISDA published a draft of a new Section 6(g) to the 2002 ISDA Master Agreement – a clause that counterparties can use to bilaterally amend the operation of the conditions precedent to be found within Section 2(a)(iii). Together with the BCBS/IOSCO margin rules for non-cleared derivatives, suspension of termination rights for […]