Mastering the ISDA Master Agreement

Paul Harding graduated from London University in 1972 and has worked in several UK and foreign banks in London in credit, marketing and documentation roles. Since 1990 he has been involved with derivatives documentation, and was a well-known negotiator in the City with Barclays Capital Securities and Hill Samuel Bank, where he was head of treasury documentation. In 1997 he founded Derivatives Documentation Ltd, a derivatives consultancy and project management company based in the City of London and providing negotiation, recruitment and in-house training services in derivatives documentation. Its clients include many of the world's leading banks. Paul Harding brings over ten years' in-depth market experience to the subject of this book.

1. IntroductionWhat are derivatives?Differences between exchange-traded and OTC derivativesMain productsSize of the global derivatives marketHow a deal is done from start to finishThe people involved 2. The evolution of the ISDA Master AgreementInefficient documentation of trade in the early daysHow ISDA documentation evolvedThe ISDA Master Agreement 3. The ISDA Master AgreementSection by section analysis of the ISDA Master AgreementSimplified glossary of terms 4. Legal issues relating to the ISDA Master AgreementGaming/WageringCapacityCredit derivativesAuthoritySuitabilityFinancial Services and Markets Act 2000/London Code of ConductEnforceability of close-out netting and set-offCross-border netting on insolvency 5. Credit Issues relating to the ISDA Credit AgreementDowngrade from cross default to cross accelerationThreshold amountCredit event upon mergerAddition of specified entitiesSpecified indebtednessSet-offPolitical riskOther credit issuesPre-signing trade policiesCategories of risk in the AgreementUsing the ISDA Master Agreement to enhance credit position 6. Operational IssuesConfirmationsPaymentsDeliveriesClose-outAdministrative matters 7. Negotiation of an ISDA Master Agreement ScheduleSample ScheduleVariants and implications of each provisionOther provisions commonly seen in the market and their applications 8. Special provisions for special entities and those sought by US counter-partiesBuilding societiesInvestment fundsHedge fundsPension fundsInsurance companiesSovereign entitiesSpecial purpose vehicles for projectsUS Schedule provisions 9. New developmentsIntroductionISDA Master Agreement Protocol"Force Majeure" and impossibilityMaster Master agreementElectronic negotiation AnnexesBibliographyIndex