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Key Issues in OTC Derivatives Contracts as COVID-19 Disrupts Global Financial Markets

The Energy Law

Derivatives contracts typically provide for standard fallback mechanisms in the event of a disruption, including no-fault termination, but parties should confirm if the standard fallbacks have been modified in a confirmation or other documentation. Companies should understand their options in advance and plan for alternatives.

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Derivatives: ISDA Announces 2016 New York Law Variation Margin Credit Support Annex

The Energy Law

ISDA is in the process of updating certain of its documents to account for recent regulatory reforms. These regulatory initiatives dictated that the existing ISDA collateral documentation be revised. The 2016 CSA is the first attempt to update the credit support documentation and it contains notable revisions from the 1994 CSA.