Most over-the-counter (OTC) derivatives transactions are documented using standardized documentation published by the International Swaps and Derivatives Association, Inc. (ISDA®). This documentation typically includes the ISDA Master Agreement (ISDA Master), a Schedule to the ISDA Master, one or more transaction confirmations and often an ISDA Credit Support Annex (CSA), as well as ISDA definitions and protocols, incorporated by reference.
Swaps and derivatives have become more and more complex and have come under closer regulatory scrutiny as their notional values exceeds even the combined world GDP. As the range of users and applications of swaps and derivatives increase, so the legal and documentation problems become more difficult and require ever-more sophisticated techniques.
In this seminar you will learn the law, finance and how to negotiate the 1992 and 2002 ISDA Master Agreements as well as their Schedules. These documents have become the de facto global standard for the global OTC derivatives trader with a notional value of above $700 Trillion. It is estimated that 90% for all OTC derivatives are documented by the ISDA Master Agreement framework so it is vital to master this documentation.
- Gain essential hands on experience of documenting swaps and other derivatives
- Perform intensive case studies on 1992 and 2002 ISDA® Master Agreements, Schedules and Agreement Confirmations.
- Protect your organisation against potential problem areas such as default, capacity, insolvency, enforcement, and regulation
- Learn to structure agreement “fixes” to ISDA® Agreements
- Learn about prime brokers, central counterparties and the new derivatives regime in the US and Europe
- Understand the finance, law and how to negotiate the ISDA Master Agreement framework.
- The Derivatives Markets and Their Uses
- OTC Derivatives
- Description and Uses of Basic Derivative Structures
- Swaps, Fully-paid transactions, Hybrid securities
- Collars, Floors and Swaptions
- The deal and the documentation process
- ISDA Collective Legal Opinions
- ISDA Master Agreement Credit Issues such as Cross default and cross acceleration, Credit event upon merger, Threshold amount, Specific indebtedness, Set off and transfer Political Risk and other Categories of Risk Pre-signing trade policies, The Vanilla ISDA
- Operational Issues Confirmations, Payments, Deliveries, Close-out Administrative matters, Clearing and reporting obligations, Lack of flexibility, Oligopoly, Concentration of risk, Liquidity
- Negotiating a 2002 ISDA Master Agreement Schedule: The Schedule and its parts, Implications and variants of each provision, Common Provisions and their implications and Foreign exchange transactions and currency options
- ISDA Islamic Master Agreement
- The OTC documentation for the New Century
- 2012 ISDA a missed opportunity
- Special provisions for Special Entities, like Investment funds, Hedge funds, Pension funds, Insurance companies, Sovereign entities, Building societies, SPVs, Individuals and US schedule
- Protocols & Collateral, such as 1992 Negotiated terminations, Credit Enhancement, Guarantees Collateral Re-Hypothecation, CSA, Novation, Disputes CCPs, SEFs, DCM, DCO, SDR, CDR ISDA EMIR Documentation Initiative, i.e. EMIR Protocols and the ISDA Dodd-Frank Documentation Initiative
The training style will include the presentation of all the material using slides and handouts.
The trainer will use practical examples to elaborate various concepts as well as show various videos that highlight particular course concepts and encourage class discussion. Participants will engage in exchange of ideas and sharing of knowledge on the subject matter.
Participants will also be able to ask questions and obtain clarifications from the trainer on all the material covered.
This programme may be approved for up to 14 CPD units in Law. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.
Who should attend
- In-house lawyers in banks and securities houses
- Bankers involved in complex financings using swaps and derivatives
- Senior documentation staff
- Compliance officers
- Lawyers in private practice
- Bankers who want to know more about legal issues
- Accountants who have to document and advise on swap transactions
- Lawyers with corporations and fund houses
- Lawyers working for corporations, governments and financial institutions
- Lawyers and accountants in private practice who advise clients on the above categories
- Traders, Hedge Fund and Private Equity Managers and Fund Managers