Watch Your Swaps And Derivatives Termination Payments
June 10, 2013, 12:44 PM EDT
Law360, New York (June 10, 2013, 12:44 PM EDT) -- Swaps and derivatives became popular and commonly used financial tools in the 1980s. However, individual dealers developed and adopted different contracts with different terms and conditions, which required lengthy negotiations. As a result, in 1985, dealers and market participants chartered the International Swaps and Derivatives Association. Since its formation, ISDA has published standardized “master agreements” that define the relationship and rights of parties engaging in swaps and derivatives transactions.
ISDA and the 1992 Master Agreement Termination Payment Calculations
The master agreements are designed to allow the...
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