General

Mastering ISDA OTC Derivatives Documentation Workshop

Swaps and derivatives have become more and more complex and have come under closer regulatory scrutiny as their notional values exceeds even the combined world GDP. As the range of users and applications of swaps and derivatives increase, so the legal and documentation problems become more difficult and require ever-more sophisticated techniques.

Since 1985, the International Swaps and Derivatives Association (ISDA) has worked to make the global derivatives markets safer and more efficient. ISDA has continuously strived to develop and improve the Master Agreement operating framework to manage and mitigate effectively the legal and financial risks faced by the over the counter derivatives markets. It is the financial tool for documenting over-the-counter OTC derivatives transactions.

In this workshop you will learn the law, finance and how to negotiate the 1992 and 2002 ISDA Master Agreements as well as their Schedules. These documents have become the de facto global standard for the global OTC derivatives trade with a notional value of above $700 Trillion. It is estimated that 90% for all OTC derivatives are documented by the ISDA Master Agreement framework so it vital to master this documentation. Attending this workshop you will find all the important information regarding ISDA gathered at one place and learn about:

  • The Derivatives Markets and Their Uses 
  • OTC Derivatives 
  • Description and Uses of Basic Derivative Structures
  • Swaps, Fully-paid transactions, Hybrid securities
  • Caps. Collars, Floors and Swaptions
  • The deal and the documentation process
  • US – Dodd-Frank 
  • EU – EMIR (The European Market Infrastructure Regulation)
  • Basel III
  • MiFID II
  • Analysis of the 1992 ISDA Master Agreement
  • Analysis of the 2002 ISDA Master Agreement
  • US Legal Issues such as Choice of New York Law, US bankruptcy and insolvency law, Gaming and bucket shop laws and The Commodity Exchange Act and the Commodity Futures Modernization Act
  • EU Legal Issues such as Capacity, Wagering and Gaming, Credit derivatives, Building Societies, Insurance Companies, Pension Funds, Hedge Funds, Authority and suitability, Enforcement of close-out netting and set-off, Cross-border netting on insolvency, Automatic early termination, Credit support, Third party rights
  • ISDA Collective Legal Opinions
  • ISDA Master Agreement Credit Issues such as Cross default and cross acceleration Credit event upon merger Threshold amount Specific indebtedness Set off and transfer Political Risk and other Categories of Risk Pre-signing trade policies, The Vanilla ISDA
  • Operational Issues Confirmations, Payments, Deliveries, Close-out Administrative matters,  Clearing and reporting obligations, Lack of flexibility, Oligopoly, Concentration of risk, Liquidity
  • Negotiating a 2002 ISDA Master Agreement Schedule: The Schedule and its parts, Implications and variants of each provision, Common Provisions and their implications and Foreign exchange transactions and currency options
  • ISDA Islamic Master Agreement
  • The OTC documentation for the New Century
  • 2012 ISDA a missed opportunity
  • Special provisions for Special Entities, like Investment funds, Hedge funds, Pension funds, Insurance companies, Sovereign entities, Building societies, SPVs, Individuals and US schedule
  • Protocols & Collateral, such as 1992 Negotiated terminations, Credit Enhancement, Guarantees Collateral Re-Hypothecation, CSA, Novation, Disputes  CCPs, SEFs, DCM, DCO, SDR, CDR ISDA EMIR Documentation Initiative, i.e. EMIR Protocols and the ISDA Dodd-Frank Documentation Initiative

Instructor

Dr. Nick Skrekas

Dr. Nick Skrekas

Dr. Nick Skrekas is an international financial expert, a legal specialist on international law as well as acclaimed consultant. Dr. Skrekas has worked in top law firms, as an expert on EU international programs and as a financial analyst in bulge bracket investment firms. He also has a background in cutting edge financial media like The Wall Street Journal and has authored two books for Thomson Reuters. He has deep experience in financial analysis, international mergers and acquisitions, cross border securitization, due diligence, project finance, international banking and securities law, IPOs, distressed deals, private equity and corporate finance. Dr. Skrekas has a Bachelor of Laws with Honors, a Bachelor of Economics, a Graduate Diploma in Applied Finance and Investments, a Masters of Laws, an MBA and Doctorate of Philosophy in Law from top Australian institutions, always graduating with exceptional grades like High Distinctions. His qualifications are recognized in Australia, the UK, the US and the European Union.  Dr. Skrekas is also a member of the International Bar Association and he is a certified analyst. He has a superior record of more than two decades of professional experience in law, global investments and financial media.

Syllabus

Module 1
Prologue
The International Swaps and Derivatives Association (ISDA)
Risk Management and ISDA
Module 2
The Derivatives Markets and their Uses
Derivative Markets
Description and Uses of Basic Derivative Structures
The Typical SWAP Deal and the Documentation Process
Module 3
How ISDA Documentation Has Evolved
ISDA Documentation
Regulatory Developments
Module 4
The 1992 ISDA Master Agreement
Section by Section Analysis
The ISDA Schedule
Module 5
Workshop 1 – Multiple Choice
Self Check
Module 6
The 2002 ISDA Master Agreement
Section by Section Analysis
The ISDA Schedule
Implementation of the 2002 ISDA Master Agreement
Module 7
Workshop 2 – Short Answer Questions
Self Check
Module 8
Legal Issues of the ISDA Master Agreement
US & EU Legal Issues
Module 9
Workshop 3: ISDA 1992 Master Agreement Documentation and its Meaning
Case Study – Self Check
Module 10
ISDA Master Agreement Credit Issues
Credit Issues
Module 11
Workshop 4 – Multiple Choice
Self Check
Module 12
Operational Issues
How the 1992 and 2002 Agreements affect the Operational Department?
Module 13
Negotiating an ISDA 2002 Master Agreement
Sample Schedule and its Parts
Implications and Variants of Each Provision
Module 14
Special Provisions For Special Entities
Special Provisions
Module 15
Workshop 5 – Short Answer Questions
Self Check
Module 16
Protocols & Collateral
1992 Negotiated Terminations
CSA, CCPs, SEFs, DCM, DCO, SDR, CDR
ISDA EMIR & ISDA Dodd-Frank Documentation Initiatives
Credit Enhancement, Guarantees and Collateral Re-Hypothecation
Module 17
Workshop 6: Negotiating the ISDA 2002 Master Agreement Documentation
Case Study – Self Check
Module 18
ISDA Islamic Master Agreement
2010 ISDA Tahawwut Islamic Master Agreement
Module 19
Conclusion
The OTC documentation for the New Century
The ISDA Master Agreement 2012: A Missed Opportunity

Benefits of the Course:

  • Gain essential hands on experience of documenting swaps and other derivatives
  • Perform intensive case studies on 1992 and 2002 ISDA® Master Agreements, Schedules and Agreement Confirmations
  • Protect your organisation against potential problem areas such as default, capacity, insolvency, enforcement, and regulation
  • Learn to structure agreement “fixes” to ISDA® Agreements
  • Learn about prime brokers, central counterparties and the new derivatives regime in the US and Europe 
  • Understand the finance and law and how to negotiate the ISDA Master Agreement framework

Who Should Attend?

  • In-house lawyers in banks and securities houses 
  • Bankers involved in complex financings using swaps and derivatives
  • Senior documentation staff 
  • Compliance officers 
  • Lawyers in private practice 
  • Bankers who want to know more about legal issues 
  • Accountants who have to document and advise on swap transactions 
  • Lawyers with corporations and fund houses  
  • Lawyers working for corporations, governments and financial institutions 
  • Lawyers and accountants in private practice who advise clients on the above categories
  • Traders, Hedge Fund and Private Equity Managers and Fund Managers

Self Check Workshops

Test yourself throughout the course through:

  • Multiple choice questions
  • Essay type questions
  • Case studies

Certification & Accreditations

Attendees will be awarded with a Certification of Completion upon successful completion. 

  • This course is accredited by MENJE Lux (Luxembourg Ministry of Education).

Additional Information

Learn more about Workshops.

$649

Self-Paced

Type:
Self-Paced
Teaching Method:
Slideshow & Workshops
MENJE:
Accredited