An Overview Of The ISDA 2023 Equity Swap – 2021 Definitions Protocol

In response to member feedback, the International Swaps and Derivatives Association, Inc. (ISDA) launched the ISDA 2023 ISDA Equity Swap – 2021 Definitions Protocol (the Protocol) on 30th October 2023, allowing adhering parties to incorporate the 2021 ISDA Interest Rate Derivatives Definitions (the 2021 Definitions) to relevant existing equity swap documentation that currently reference the ISDA 2006 Definitions.

This briefing provides an overview of the Protocol.

• Why has ISDA launched the Protocol?
• What does the Protocol do?
• What documents does the Protocol amend?
• What next?

Why has ISDA launched the Protocol?

Equity swaps entered into under an ISDA Master Agreement primarily rely on the 2002 ISDA Equity Derivatives Definitions as the basis for standardised equity related definitions and provisions. Additionally, parties commonly incorporate ISDA's interest rate derivatives definitions to describe the interest rate cashflows in equity