Featured Product

    ISDA Announces New Modules for Automated Derivative Documentation Tool

    June 23, 2020

    ISDA and Linklaters announced that they will make three new documentation modules available on ISDA Create during 2020. ISDA Create is an online solution that automates the process of producing and agreeing derivatives documentation and enables the capture of valuable structured legal data in a complete digital record. The documents covered by the new modules include generic amendment agreements, EONIA Bilateral Template Amendment Agreement, and schedules to certain Master Agreements. The three new documentation modules being added in 2020 will join the existing ISDA Create initial margin module, which allows users to put in place the documentation necessary to meet regulatory initial margin requirements. In addition, ISDA has launched the ISDA Clause Library, a tool that sets out standard drafting options for frequently negotiated provisions within the ISDA Master Agreement, in addition to the most common variants of these provisions. The library will also be incorporated into the ISDA Create.

    The documents covered by the new modules available on ISDA Create include:

    • Generic amendment agreements to ISDA published documents. These forms, which are adapted from the March 2003 ISDA published form, allow users to complete any amendment to one or more ISDA published documents. There are many potential use cases for these amendment agreements, including by asset managers, which regularly alter the terms of their umbrella agreements. The new module will enable them to add or remove clients or make customized client-specific amendments completely online. Documenting these amendments via ISDA Create will provide firms with a complete and accurate data set of the terms agreed in the amendment, as well as a transparent audit trail of changes. The generic amendment agreements will be available from July 2020.
    • The recently published EONIA Bilateral Template Amendment Agreement, which enables parties to update references to EONIA in their documentation given the expected permanent cessation of that rate in January 2022. Other interest rate reform documents will be added to this module as they become available. These will include the suite of template provisions that will accompany the forthcoming interbank offered rates fallbacks protocol, as well as agreements to allow participants to replace the effective federal funds rate with SOFR in their bilateral credit support annexes. The EONIA Bilateral Template Amendment Agreement will be available from July 2020.
    • The schedules to the 1992 ISDA Master Agreement (Multicurrency – Cross Border), the ISDA 2002 Master Agreement, and the 2002 forms of the Master Agreement under French and Irish law. The 1992 ISDA Master Agreement (Multicurrency – Cross Border) and the ISDA 2002 Master Agreement will be available in the fourth quarter of 2020, with the ISDA 2002 Master Agreement under French and Irish law following soon after.

    The ISDA Clause Library aims to reduce instances of differently worded clauses that essentially achieve the same outcome, making contract negotiation more efficient and improving the consistency and accuracy of legal agreement data. In developing the ISDA Clause Library, ISDA conducted a review of thousands of Master Agreements, focusing on the substance and outcome of each clause rather than the specific wording. This resulted in the ISDA Documentation Taxonomy, which provides a framework for identifying and categorizing commonly used clause variants. The ISDA Clause Library provides standard form drafting options, allowing users to construct clauses that achieve the clause outcomes expressed within the ISDA Documentation Taxonomy. ISDA Clause Library will be expanded in the fourth quarter of 2020 to include ISDA credit support documentation under English, New York, French, Irish, and Japanese laws. The ISDA Clause Library and underlying ISDA Documentation Taxonomy will be maintained over time to reflect changes to market and legal standards.


    Related links

    Keywords: International, Banking, Securities, Derivatives, Initial Margin, Documentation, ISDA Create, ISDA Clause Library, EONIA, Interest Rate Benchmark, Regtech, ISDA

    Featured Experts
    Related Articles

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597