The International Swaps and Derivatives Association (ISDA) Master Agreement is a standardized document that governs the terms of over-the-counter (OTC) derivatives trades. The 2002 ISDA Master Agreement is the most widely-used version of the document, and a sample of it can be found online.
The 2002 ISDA Master Agreement sets out the basic terms and conditions for OTC derivatives, including interest rate swaps, credit default swaps, and foreign exchange transactions. It is a framework for negotiating specific trades between two parties, and can be customized to suit the needs of a particular transaction.
The sample 2002 ISDA Master Agreement contains 14 sections, covering topics like definitions, representations and warranties, and termination events. Each section contains multiple subsections and clauses, providing a detailed framework for the negotiation and execution of OTC derivatives trades.
One key feature of the 2002 ISDA Master Agreement is its incorporation of the ISDA Credit Support Annex (CSA). The CSA sets out the terms for the exchange of collateral between the parties to a trade, providing protections against counterparty credit risk.
The 2002 ISDA Master Agreement has been widely adopted in the OTC derivatives market, and is recognized as the industry standard. Its widespread use has helped to promote standardization, reduce legal and operational risks, and facilitate the smooth functioning of the OTC derivatives market.
As a professional, it`s important to note that the term « 2002 ISDA Master Agreement sample » is a highly specific keyword phrase that may not generate a large volume of search traffic. However, it is a valuable topic for anyone involved in the OTC derivatives market, and can provide useful insights into the structure and content of the document. As such, it may be worth including in a broader article on OTC derivatives trading, risk management, or financial regulation.