ISDA Updates And Consolidates 2021 Interest Rate Derivatives Definitions

ISDA highlighted the key changes made in the 2021 ISDA Interest Rate Derivatives Definitions. The booklet provides "the framework for documenting over-the-counter interest rate derivatives transactions."

ISDA stated that the updated and consolidated terms include:

• the Mark-to-Market Matrix and the Compounding/Averaging Matrix, which are substantively the same as those under the 2006 Definitions;
• the Floating Rate Matrix, which includes the Floating Rate Options that had been previously set out in the main book;
• the Currency/Business Day Matrix, which includes the definitions of currencies and their principal financial centers; and
• the Settlement Matrix, which has been expanded and consolidates provisions previously contained in several matrices under the 2006 Definitions.