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Terminating derivatives entered into under an ISDA Master Agreement

This guidance note discusses how to terminate a derivative transaction that is governed by an ISDA Master Agreement, including:

  • the differences between Termination Events and Events of Default;
  • what to include in Termination Notices;
  • what to include in calculation statements;
  • the interest payments that accrue on the Early Termination Amount (and different setting out between the 1992 and 2002 ISDA Master Agreements); and
  • what close-out netting is.

See Terminating derivatives entered into under an ISDA master agreement.