How Does the Legal Framework Support Bilateral DVP Arrangements? ▴ Learn

How Does the Legal Framework Support Bilateral DVP Arrangements?

The legal framework supports bilateral DVP through master agreements like the ISDA Master Agreement and its Credit Support Annex (CSA). These documents provide the legal basis for collateral posting, netting, and the enforceability of the close-out process upon default.

Without legal certainty on netting and collateral rights, bilateral DVP would be significantly riskier.

What Is the Primary Advantage of a Centrally Cleared DVP over a Bilateral OTC DVP?

What Is a ‘Credit Support Annex’ (CSA) and Its Role within the ISDA Framework?

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

What Are the Primary Differences between the ISDA Master Agreement and the GMRA (Global Master Repurchase Agreement)?