ISDA-Masteragrement (Multicurrency-Cross Border) (Master Agreement 1992); and the parties agree that the text of this agreement must be the printed form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border), as published by the International Swaps and Derivatives Association, Inc. and protected by copyright. The ISDA Masteragrement, published by the International Swaps and Derivatives Association, is the most widely used master service contract for otC derivatives transactions internationally. It is part of a documentary framework that aims to provide comprehensive and flexible documentation on OVER-the-counter derivatives. The framework consists of a master contract, a calendar, confirmations, definition brochures and credit support documentation. 1992 ISDA-Masteragrement and Force Majper Events Under the 1992 Master Agreement, Market Quotation offers an objective measure for calculating the amount of early termination of its three documents in 1987: (i) a standard master contract for interest rate swaps in U.S. dollars; (ii) a standard-master contract for multi-currency interest rate and exchange rate swaps (known as the « 1987 ISDA Executive Contract »); and (iii) definitions of interest rates and currencies. The parties try to limit this responsibility by including « unconfident » representations in their agreements, so that each party does not rely on the other and makes its own independent decisions. While these submissions are helpful, they would not prevent business practices or other measures if a party`s conduct was inconsistent with that presentation. The 1990s led to a significant production of documents by ISDA, including (i) a revised version of the swap code, known as the 1991 ISDA definitions, which were then designed and replaced by the 2000 ISDA definitions; (ii) a revision of the 1987 Framework Agreement that resulted in the 1992 Framework Agreement; (iii) the 1992 Masteragrement user guide, developed in 1993, which details the various sections of the 1992 master contract; (iv) definitions of commodity derivatives developed in 1993 and completed in 2000; and v) the annex, which provides for additional documentation, completed in 1994, followed by its manual of use in 1995. The framework contract allows the parties to calculate their net financial commitment in over-the-counter transactions, i.e. a party calculates the difference between what it owes to a counterparty under a master contract and what the consideration owes under the same agreement. This only applies to the 1992 masteragrement.
The 2002 Master Agreement rejected the first and second methods. In practice, the first method was very rarely chosen, as the financial institutions concerned had to declare their gross commitment and not the net commitment under the masteragrement. The 2002 Master Agreement also replaced the distinction between market quotation and loss with a single concept, « Close-out Amount. » This transaction is intended for each transaction completed and is, on the whole, the profit or loss that would result from the conclusion of an equivalent transaction at the time of the early termination.