Eurozone Contingency Planning: ISDA’s Illegality/Force Majeure Protocol – Teigland-Hunt LLP Client AlertJul 24, 2012
In response to Eurozone concerns, ISDA recently published its Illegality/Force Majeure Protocol, which is now open for adherence. What It Does: This Protocol enables parties to 1992 ISDA Master Agreements to incorporate the illegality and force majeure provisions of the 2002 ISDA Master Agreement. Why: This Protocol is intended to provide parties transacting under 1992 […]
Although the timeline for mandatory clearing of swaps under the Dodd-Frank Act narrows, bilaterally negotiated OTC derivatives remain, and will continue to remain, relevant. The parties to non-cleared OTC transactions will need to negotiate an ISDA Master Agreement to govern the general non-trade specific terms of such transactions: Default, Termination, Netting and also more mundane matters such as notice and governing law provision must be addressed. This article reviews which of the ISDA Master Agreements may be most appropriate, the main differences between them and provides an analysis of the central provisions that arise in the negotiation thereof.
While the prospect of mandatory clearing is looming market participants continue to enter into over-the-counter derivative trades bilaterally under an ISDA Master Agreement. This Part I of the article discusses the origins of the ISDA Master Agreements, the architecture of the standardized documentation (including that it forms a single agreement), and the risk and compliance considerations that should be taken into account prior to entering into an ISDA Master Agreement and also during the course of a trading relationship documented under such agreement.
Entering Uncharted Waters: MF Global liquidation presents unprecedented test of U.S. insolvency regime for dual registrants – Teigland-Hunt LLP Client AlertNov 22, 2011
Even in these early days, the collapse of MF Global is proving significant for a number of reasons. In addition to being one of the ten largest bankruptcies in U.S. history, MF Global’s collapse potentially involves missing customer assets amounting to hundreds of millions of dollars. In the long run, however, one of the larger distinctions may prove to be that the liquidation of MF Global will require the unprecedented application of two vastly different bankruptcy and customer asset protection regimes to a sizeable brokerage firm.