ISDA Preps Master Agreement Update
The International Swaps and Derivatives Association has started to overhaul its 1992 master agreement documentation and replace it with an updated version by the end of 2002. The initiative is part of an ongoing effort to update documentation. Kimberly Summe, general counsel at ISDA in New York, said this process started at a meeting two weeks ago in New York and there was a similar meeting last week in London, approximately 100 derivatives professionals attended both meetings. Members have until Jan 7, 2002 to submit comments. "All members want to see this," said Summe.
Over the course of 2002 working groups will write drafts of the agreement, which will be sent out to committees of about 100 members, that will in turn send comments. "It's very labor and time intensive," noted Summe, adding that there will likely be over 40 drafts of the document. The new master agreement will incorporate all the supplements and commentaries the trade association has published since the 1992 agreement and will also look at other areas, such as set-off provisions and tax law changes.