The International Swaps and Derivatives Association (ISDA) has updated its publicly available FAQs on Brexit. The ISDA has also updated the more in-depth Brexit FAQs for its membership

The FAQs are helpful to those market participants that use the ISDA Master Agreement and cover the following key areas:

  • contractual points under ISDA documentation;
  • choice of law, jurisdiction and recognition of judgments;
  • insolvency;
  • access to EU financial markets;
  • EMIR;
  • collateral;
  • Settlement Finality Directive;
  • Bank Recovery and Resolution Directive (BRRD);
  • Amendments to the ISDA Master Agreement and transfers of existing contracts.

Among other things the FAQs asks what amendments, if any, should market participants consider making to their ISDA Master Agreement. The ISDA’s response is as follows:

“None immediately. However, there are amendments which parties may consider making depending on the likely outcome of the exit negotiations. Please see the answers to Question 8 (inclusion of additional termination rights), Question 9.3 (choice of law for non-contractual obligations), Question 9.4 9merits of amending the governing law), Question 11.1 (insertion of arbitration clauses), Question 13 (Consideration of the jurisdiction clause), Question 14 (amendments to the jurisdiction clause), Questions 25, 26 and 27 (BRRD amendments).”

View Brexit FAQs (publicly available), 10 January 2018