ISDA meaning

This checklist outlines the principal ISDA documentary points that should be considered during a financing transaction. Term sheet stage If acting for a borrower and specialist hedging advisers are engaged, obtain their input on the term sheet. If acting for a borrower, confirm the total pricing of the deal is clear (covering both the loan and the hedge). A borrower may pick a lender for a low loan margin, only to find that the swap credit spread from the same lender renders the overall economics less appealing than those from another lender. Are the loan and hedging set on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)? Does the lender require a zero floor in its loan? If acting for a borrower, ensure the borrower understands the consequences of any mismatch between this and the hedging documentation. ...

This timeline shows key developments relating to Assimilated Regulation (EU) 648/2012 (UK EMIR) from 2024 onwards For prior milestones, consult European Market Infrastructure Regulation (EMIR)—timeline [Archived]. 23 January 2026 — ISDA | UK Finance ISDA and UK Finance Respond to FCA and HMT Consultations The International Swaps and Derivatives Association (ISDA) and UK Finance filed joint submissions to a Financial Conduct Authority (FCA) consultation and an HM Treasury (HMT) draft statutory instrument, focused on simplifying the UK EMIR intragroup framework. The measures would create a permanent, streamlined intragroup regime under UK EMIR and codify, on an enduring basis, exemptions available under the temporary intragroup exemption. ISDA backs the approach and encourages additional simplifications. 11 December 2025 — BoE Consultation paper: Exempting post-trade risk reduction transactions from the clearing obligation The Bank of England (BoE) is seeking views on proposals to exclude trades executed as part of a post-trade risk reduction service from the derivatives clearing obligation set out in Article 4 of UK...

What are the key issues for lawyers to consider? Ascertain whether an Event of Default or a Termination Event has taken place, as this will dictate whether Section 6(a) or Section 6(b) of the ISDA Master Agreement will apply. If an Event of Default has occurred, confirm whether or not Automatic Early Termination is applicable. This will be specified in the Schedule to the ISDA Master Agreement...

In this issue Security Sustainable finance Debt capital markets Derivatives Regulation for derivatives lawyers Claims and remedies Daily and weekly news alerts Updated Practice Notes Useful information Security HM Land Registry has revised Practice Guide 29—Registration of legal charges and deeds of variation of charge. An update to section 4 now explains how to remove a note recorded in the charges register pursuant to section 859H of the Companies Act 2006. See: LNB News 06/05/2025 2. Source: Registration of legal charges and deeds of variation of charge (PG29). Sustainable finance The European Commission has opened a call for evidence to review the Sustainable Finance Disclosures Regulation (EU) 2019/2088 (EU SFDR). The initiative targets unnecessary burdens by simplifying and streamlining obligations, including easing environmental, social and governance reporting for financial market participants so they can focus on information most relevant to investors. Responses are requested by 30 May 2025, and the feedback will guide...

In this issue: Banking and Finance case round-up Lending Security Debt capital markets Derivatives Regulation for derivatives lawyers Securitisation and structured products Restructuring Technology in banking & finance transactions Regulation for banking lawyers Scotland Daily and weekly news alerts New and updated content Useful information Banking and Finance case round-up Banking & Finance—November 2024 case round-up For a summary of the cases we flagged in Banking & Finance during October 2024, refer to News Analysis: Banking & Finance—November 2024 case round-up. Lending Re KRF Services (UK) Ltd [2024] EWHC 2978 (Ch) The judgment addressed a High Court application for an administration order, heard in that court, and centred on two key points of interest: (i) whether the sole director’s resolution to seek an administration order was effective; and (ii) the effect of the sanctions regime. On the first question, the court examined the company’s unamended Model...

In this issue: Sustainable finance and ESG weekly round-up Moveable Transactions (Scotland) Act 2023 Football Governance Bill LIBOR and benchmarks Sustainable finance Debt capital markets Derivatives Regulation for derivatives lawyers Technology in banking & finance transactions Structured products and securitisation Regulation for banking lawyers Banking & Finance Highlights 2024/2025 Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG weekly round-up For this week’s coverage of Sustainable finance and ESG developments, please see: Sustainable finance and ESG weekly round–up—19 December 2024. Moveable Transactions (Scotland) Act 2023 Moveable Transactions (Scotland) Act 2023 (Commencement) Regulations 2024 SSI 2024/378: From 1 April 2025, the outstanding provisions of the Moveable Transactions (Scotland) Act 2023 (the Act) will come into effect. See: LNB News 17/12/2024 9. Moveable Transactions (Forms) (Scotland) Regulations 2024 SSI 2024/379: These prescribe the forms to be used for the purposes set out...

What does this Practice Note cover? This Practice Note outlines the principal provisions that apply to both the 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the 1992 Agreement) and the 2002 ISDA Master Agreement (the 2002 Agreement), together with their accompanying schedules. Unless indicated otherwise, any reference here to the master agreements (the ISDA master agreement) should be read as a reference to both the 1992 and 2002 Agreements. For a comparison of the two forms, see Practice Note: ISDA documentation—comparison of the 1992 and 2002 master agreements; for the broader ISDA documentation framework, see Practice Note: Derivatives—ISDA documentation framework. The key concepts underpinning the ISDA master agreement The ISDA master agreement rests on three core concepts, outlined briefly below: single agreement flawed asset close-out netting Single agreement Under ISDA’s documentation architecture, every derivative transaction between a pair of counterparties is captured under one overarching agreement (implemented through multiple layers of documentation), as provided in Section 1(c) of the...

Commentary and explanation Financial Conduct Authority of the United Kingdom...

Terminating a derivative under an ISDA Master Agreement When ending a derivatives contract documented under an ISDA Master Agreement, it is vital to follow the termination provisions exactly as drafted. Any misstep may mean the termination is not properly effected and could be invalid. Section 6 (Early Termination) details the outcomes that follow once an Event of Default or a Termination Event—each described in Section 5 (Events of Default and Termination Events)—has occurred. Put simply, an Event of Default involves fault attributable to a party, while a Termination Event usually arises without blame or beyond a party’s control. Section 6 also explains how the close-out netting mechanism operates after an Event of Default or Termination Event. For more detail, see Practice Notes: Scope of the ISDA Master Agreement part 4—Section 5 (Events of Default and Termination Events) and Scope of the ISDA Master Agreement part 5—Section 6 (Early Termination). Termination events...

Notice designating an Early Termination Date following a Credit Event Upon Merger/Additional Termination Event/Tax Event Upon Merger where Burdened Party is not Affected Party [ Insert Lead-in Language ] We hereby give notice that the following matters have occurred: [ Set out, with an appropriate level of specificity, the facts and circumstances that result in the Credit Event Upon Merger/Additional Termination Event/Tax Event Upon Merger in which the Burdened Party is not the Affected Party, and identify the Affected Transactions. Your explanation should be detailed enough and expressly linked to the relevant wording of Section 5(b) or the Additional Termination Event provision so that the counterparty can reasonably understand the basis for your determination. ]...

Notice designating an Early Termination Date following an Event of Default [ Insert Lead-In Language ] An Event of Default under the Agreement has arisen with respect to you in relation to: Section 5(a)(i) (Failure to Pay or Deliver) Section 5(a)(ii) (Breach of Agreement) Section 5(a)(iii) (Credit Support Default) Section 5(a)(iv) (Misrepresentation) Section 5(a)(v) (Default under Specified Transaction) Section 5(a)(vi) (Cross Default) Section 5(a)(vii) (Bankruptcy) Section 5(a)(viii) (Merger Without Assumption) The particulars of the Event of Default are set out below: [ Insert description of the relevant Event of Default, see Exhibits to this template notice for examples of descriptions of different Events of Default under the Agreement ] Where Bankruptcy has occurred and Automatic Early Termination applies: Automatic Early Termination has been specified as applicable to you in the Schedule to the Agreement, and the circumstances described above constitute an Event of Default under Section 5(a)(vii) [ (1)/(3)/(4)/(5)/(6) ] [ or, to the extent...

[ Insert Lead-in Language ] Illegality Termination Event We hereby refer to our notice dated [ insert date ] (the ' Original Notice ') formally notifying you of the occurrence of an Illegality Termination Event. If Party A is the sole Affected Party and Section 5(b)(i)(1) applies: In accordance with Section 6(b)(ii) of the Agreement, we have employed all reasonable endeavours (not requiring us to bear any loss, save for immaterial, incidental expenses) to, within 20 days from the date on which the Original Notice became effective, diligently transfer all of our rights and obligations under the Agreement in respect of the Affected Transactions to another of our Offices or Affiliates so that the Illegality Termination Event no longer subsists...