ISDA Master Agreement: Difference between revisions
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imported>Doug Williamson (Add additional quote.) |
imported>Doug Williamson (Update quote title.) |
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:<span style="color:#4B0082">'''''ISDA Master Agreements'''''</span> | :<span style="color:#4B0082">'''''ISDA Master Agreements'''''</span> | ||
: "The ISDA master agreements set out standard terms and conditions applicable to parties’ transactions, together with a schedule. | : "The ISDA master agreements set out standard terms and conditions applicable to parties’ transactions, together with a schedule. | ||
:The schedule gives the parties the ability to adjust the master agreement to their requirements by completing blanks, selecting alternative operative provisions and amending the master agreement where appropriate." | |||
:<span style="color:#4B0082">'''''Escrow provisions'''''</span> | |||
:<span style="color:#4B0082">'''''Escrow provisions in ISDA arrangements'''''</span> | |||
:"... extra provision required by the parties... may include: | :"... extra provision required by the parties... may include: | ||
Revision as of 09:39, 18 March 2021
A commonly used standardised contract between counterparties trading OTC derivatives.
- ISDA Master Agreements
- "The ISDA master agreements set out standard terms and conditions applicable to parties’ transactions, together with a schedule.
- The schedule gives the parties the ability to adjust the master agreement to their requirements by completing blanks, selecting alternative operative provisions and amending the master agreement where appropriate."
- Escrow provisions in ISDA arrangements
- "... extra provision required by the parties... may include:
- escrow provisions to address potential problems arising from time differences between the places to which each party makes payments (i.e. one party could make a payment at the time it is obliged to do so in the relevant time zone but then fail to receive payment due to it from the other party); in this situation provision can be made for a third party to hold payments “in escrow” and only release a payment when it has received the corresponding payment from the other party."
- The Treasurer's Wiki - Derivatives documentation
