05/12 Is it all over? - ISDA termination and closing out transactions

Commodities in Focus briefing note

There have been a number of first instance decisions concerning the construction and effect of Section 2 (a) (iii) of the ISDA Master Agreement. The problem has been the conflicts between the various judgments, and in particular, with respect to the interpretation and effect of Section 2 (a) (iii). This has led to uncertainly as to how the Section is intended to operate. Further, general problems of interpretation have arisen with respect to the termination of Transactions and the calculation of loss, especially in the event of one party becoming subject to insolvency proceedings. Download our briefing note to find out more.

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