How Does the ISDA Master Agreement Facilitate Netting? ▴ Learn

How Does the ISDA Master Agreement Facilitate Netting?

The ISDA (International Swaps and Derivatives Association) Master Agreement provides a single, standardized legal framework under which all bilateral derivatives transactions between two parties are conducted. This single agreement is the foundation for close-out netting, ensuring that all trades are treated as one single contract for settlement purposes upon default.

Define the ‘Netting’ Principle as It Applies to the ISDA Master Agreement

Differentiate between ‘Bilateral Netting’ and ‘Multilateral Netting’

How Do ISDA Master Agreements Mitigate Counterparty Risk in OTC Derivatives, Even with Non-Custodial Trading?

How Does the Use of a ‘Master Netting Agreement’ Reduce Counterparty Exposure for a Prime Broker?