Skip to content

ISDA Close-out Framework

Emma Bibby and Alejandro Birsan, our DRS summer interns in 2024, have written a blog post on the ISDA Close-out Framework published by ISDA on 27 June 2024 Summary Because of regulatory requirements implemented as a consequence of the financial crisis in 2008, the world of collateralised OTC derivative contracts became more complex in the […]

Subscribe to our blog

Protected: ACA Guide

There is no excerpt because this is a protected post.

Please don’t compare me to the temp market!!

At DRS, we offer outsourced contract management solutions.  In simple terms, we help our clients to negotiate contracts from scratch, to amend them when and if necessary, and to properly understand what they say. Prospective clients sometimes look at the services we offer as being interchangeable with those of the temp market.  I think that […]

Much ado about nothing? Understanding ‘reasonable endeavours’ provisions

Jemima Jenks, who has been with us for the last two weeks on work experience, has written a blog post on the topic of “reasonable endeavour”. Read on to find out more. Thanks to Jemima! Many commercial contracts include provisions which impose ABSOLUTE obligations on one or both of the parties (for example, ‘you MUST […]

Tax Event

A “Tax Event” occurs if either party to a GMRA (known as the “notifying party”) notifies the other that, in its reasonable opinion: has or will have a material adverse effect on that party in the context of a Transaction. The notifying party must, if requested to do so by the other party, provide an […]

Repurchase Price

The “Repurchase Price” is the amount paid by the Seller to the Buyer on the “Repurchase Date”.  Any failure to do so constitutes an Event of Default for the purposes of the GMRA.  It is easiest to think of the “Repurchase Price” in terms of a loan transaction.  In these circumstances, the “Repurchase Price” would […]

Something you forgot? Netting Opinions

There has been a long-standing concern that banks are not fully complying with obligations to revise and refresh their netting opinions. Credit institutions are fully incentivised to comply with these requirements by the significant capital “savings” if netting is applicable. However, the same obligations apply to the buy side- at least those entities who are […]

ISDA plans to embrace the late 20th Century (for Notices)

Often referred to as “the most important contract in the world”, the primary purpose of the ISDA MA is to allow close-out with netting. While almost innumerable legal opinions exist to give some comfort to netting, the actual mechanics of close-out have been long due a major overhaul. The 2002 update to the ISDA MA […]

Repurchase Date

The “Repurchase Date” is the date upon which the Buyer is required to sell “Equivalent Securities” back to the Seller with respect to any Repurchase Transaction executed under a GMRA.  More specifically, on the “Repurchase Date”: Failure to do either of the above constitutes an Event of Default for the purposes of the GMRA. It […]

Repriced Transaction

In practice, “repricing” a transaction (whether that transaction is a Repurchase Transaction or a Buy/Sell Back Transaction) is an alternative to making a traditional margin call for a party with either “Transaction Exposure” (with respect to a single transaction) or “Net Exposure” (with respect to multiple transactions).  In practice, this method tends to be used […]

Press enter or esc to cancel