ISDA Sends Out Draft Master Document
The International Swaps and Derivatives Association has sent out a second draft of its proposed master agreement. Kimberly Summe, general counsel at ISDA in New York, said it received approximately 40 comment letters from banks, law firms and end users in response to its first draft and has incorporated these into a new version. The second draft will be discussed at a meeting in London and New York on March 12 or 14, with comments due in about a week later.
Summe said firms unanimously agreed to include a new clause, know as force majeuer, which allows for the suspension of payments and deliveries in the event of circumstances, such as terrorism, natural disasters and labor riots.
ISDA started reviewing the master agreement late last year and plans to have a new one in place by year-end (DW, 12/16).