ISDA And FIA Execution Agreement, Cleared Derivatives Execution Agreement And Addendum

Clearing requirements have brought about significant changes to derivatives documentation. While uncleared derivatives continue to be governed by an International Swaps and Derivatives Association (ISDA) Master Agreement and a Credit Support Annex, cleared derivatives require further documentation such as: (i) clearing agreements, (ii) give-up agreements, and (iii) collateral transformation agreements.

The derivatives industry has created standard forms to assist with the documentation burden arising from putting clearing arrangements in place and generally to assist with complying with the new rules governing derivatives. Those standard documents include classification letters, delegated reporting agreements (both available from the ISDA website) and client clearing documentation for both US and non-US platforms, as well as a number of protocols and standard amendment agreements.