This committee focuses on facilitating and addressing issues (ranging from documentation to market practice) related to the prudent development of the range of equity derivatives transactions.

  • Europe Chair: Onno Vriesman (Deutsche Bank)
  • European Documentation Working Group Chair: Jonathan Asher (Citigroup)
  • Japan Co-Chair: Kieko Sato (Mizuho Securities) & Toshihiko Matsuura (Nomura Securities)
  • North America Chair: Glen Rae (Bank of America Securities)
  • Global Staff Contacts: Legal - Katherine Tew Darras (kdarras@isda.org); Policy - Johanna Schwab (jschwab@isda.org)

How to Join

ISDA Definitions, User’s Guides and Related Confirmation Templates
SUBJECT
STATUS
AVAILABLE DOCUMENTS
2002 ISDA Equity Derivatives Definitions which update the 1996 Definitions, adding terms for forwards, Bermuda options and barrier (knock-in and knock-out) instruments

Published - January 8, 2003

 2002 ISDA Equity Derivative Definitions


User's Guide which assists in the understanding and use of the 2002 Equity Derivatives Definitions and forms of confirmation
 Published - September 2003 User’s Guide to the 2002 ISDA Equity Derivative Definitions
Eighteen forms of Confirmations for use with 2002 ISDA Equity Derivatives Definitions Published - January 2003
 Confirmations for use with the 2002 ISDA Equity Derivatives Definitions
2006 ISDA Fund Derivatives Definitions Published - March 15, 2006 2006 ISDA Fund Derivatives Definitions
French Translation of the 2002 ISDA Equity Derivatives Definitions (for educational purposes only) Published French Translation of the 2002 ISDA Equity Derivatives Definitions

Top of Page

ISDA Master Confirmation Templates (by region)
SUBJECT
STATUS
AVAILABLE DOCUMENTS
Variance Swap Template Comparison Chart – by region
 Published - November 6, 2007
 Variance Swap Comparison Chart


Americas
SUBJECT
STATUS
AVAILABLE DOCUMENTS
2008 Americas Master Designated/Exchange-Traded Contract Option Confirmation Agreement - This new 2008 Americas Master Designated/Exchange-Traded Contract Option Confirmation Agreement is intended to document physically-settled share option transactions and cash-settled index option transactions that reference listed share options (Designated Contracts) and listed index options (Exchange-traded Contracts) on U.S. underliers. This Master Confirmation incorporates the 2002 Definitions and includes one General Terms Confirmation for Designated Contracts (Annex A) and Exchange-traded Contracts (Annex B), respectively, and is supplemented with a related Transaction Supplement for trade details.
Published - March 28, 2008 2008 Americas Master Designated/Exchange-Traded Contract Option Confirmation Agreement
ISDA Equity Derivatives Documentation Matrix
 Published - October 17, 2007
 ISDA Equity Derivatives Documentation Matrix
2004 Americas Interdealer Master Equity Derivatives Confirmation Agreement - Index Options, Index Swaps and Index Basket Swaps, Share Options, Share Swaps, Share Basket Swaps on U.S. underliers

Published - March 29, 2004

 2004 Americas Interdealer Master Equity Derivatives Confirmation Agreement


Explanatory note to the 2004 Americas Interdealer Master Equity Derivatives Confirmation Agreement
 Published - March 29, 2004 Explanatory note
Canadian Supplement to the 2004 Americas Interdealer Master Equity Derivatives Confirmation Agreement - for transactions on Canadian underliers Published - March 29, 2004
 March 2004 Canadian Supplement to the Master Confirmation
Variance Swap Templates to the 2004 Americas Interdealer Master Equity Derivatives Confirmation Agreement - Index and Share Variance Swaps Revised version, Published January 30, 2007. Index and Share Variance Swap Annexes
Stand-alone 2007 Americas Master Variance Swap Confirmation Agreement - Index and Share Variance Swaps - for hedge funds Published - January 30, 2007. 2007 Americas Master Variance Swap Confirmation Agreement
U.S. Listed Look-alike Option MCA Working Group Active ISDA Working Group To join the working group, contact kdarras@isda.org


Asia (ex-Japan)
SUBJECT
STATUS
AVAILABLE DOCUMENTS
2008 AEJ Master Equity Derivatives Confirmation Agreement - The 2008 AEJ Master Equity Confirmation Agreement contains the Open Market EFS Annex which documents cash-settled equity finance share swaps referencing underlying shares in Australia, Hong Kong, New Zealand or Singapore.
 Published March 31, 2008 2008 AEJ Master Equity Derivatives Confirmation Agreement
2007 AEJ Master Variance Swap Confirmation Agreement - The 2007 AEJ Master Variance Swap Confirmation Agreement documents index and share variance swap transactions with respect to an underlying index or share in Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand.

Published - February 12, 2007

2007 AEJ Master Variance Swap Confirmation Agreement

Amendment to the 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement - The Amendment will enable parties who have executed the 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement to amend Annex IO (Index Option) and SO (Share Option) of their existing 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement by inserting the date of the amendment on Exhibit I. (published March 13, 2007 Note: This supersedes version dated November 29, 2006) Amendment to the 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement
Revised 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement - The Confirmation Agreement is designed to document Index Option and Share Option Transactions with respect to underlying shares or indices in Australia, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand in the interdealer market. (published March 13, 2007 Note: This supersedes version dated November 29, 2006) Revised 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement
ISDA AEJ Reference Price Source Matrix - If parties have executed the Amendment to 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement or the Revised 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement, and if the Reference Price of the Transaction is listed in the ISDA AEJ Reference Price Source Matrix as of the Trade Date, then the Reference Price Source contained therein with respect to such Reference Price currency shall be deemed to apply to the Transaction. Published November 29, 2006

ISDA AEJ Reference Price Source Matrix
2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement - Index Options, Index Swaps, Share Options, Share Swaps on Australian, Hong Kong, Indian, Indonesian, Korean, Malaysian, New Zealand, Singapore, Taiwan and Thailand underliers (Note: This has been superseded by the version dated November 29, 2006) Published - September 13, 2005 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement
Additional Provisions for Use with Indian Underliers in conjunction with the 2005 AEJ Interdealer Master Equity Derivatives Confirmation Agreement Published - June 6, 2005 Additional Provisions for Use with Indian Underliers
Memo from Allen & Overy regarding use of Joint Calculation Agents in the 2005 AEJ (Asia Excluding Japan) Interdealer Master Equity Derivatives Confirmation Agreement Published Memo regarding AEJ Master Equity Derivatives Confirmation - Joint Calculation Agents.
AEJ Swap/Option MCA Working Group Active ISDA Working Group To join the working group, contact kdarras@isda.org


Europe
SUBJECT
STATUS
AVAILABLE DOCUMENTS
European Equity MCA Depository Receipt Supplement Implementation Side Letter - This side letter is designed to enable parties to implement the two depository receipt supplements to the 2002 ISDA Equity Derivatives Definitions that were published in 2007. The letter includes different annexes that may be included with the letter (as applicable) to implement the depository receipt supplements into various European equity derivatives master confirmation agreements. The letter provides standard fallbacks for selection of the 2007 Partial Lookthrough Depository Receipt Supplement or the 2007 Full Lookthrough Depository Receipt Supplement depending on the location of the underlying shares.
Published January 31, 2008

European Equity MCA Depository Receipt Supplement Implementation Side Letter

 

European Master Equity Confirmation Agreement

This amended version includes Annex EFS (Cash-settled Equity Finance Share Swap).

The 2007 European Master Equity Confirmation Agreement documents option transactions with respect to a European index or share (includes Multiple Exchange Index Annex and Index/Share Option Annex) as well as cash-settled equity finance share swaps.

Published September 17, 2007

(Note: The Multiple Exchange Index Annex is intended to override the need to use Exhibit H in the User’s Guide to the 2002 ISDA Equity Derivatives Definitions (EuroStoxx Confirmation Definitions).

 European Master Equity Confirmation Agreement

Revised 2007 European Variance Swap Master Confirmation Agreement – This amended version includes changes to Annex SVS in respect of the application of Related Exchange / Exchange when determining a Scheduled Trading Day for Share Variance Swaps. Related Exchange is no longer taken into account for the determination of a Scheduled Trading Day for a Share Variance Swaps .

The 2007 European Variance Swap Master Confirmation Agreement is designed to document index and share variance swap transactions with respect to Covered Transactions. Covered Transactions are defined in the agreement as Share Variance Swap Transaction with an Exchange in a Specified Country and on a share (excluding American Depository Receipts and Global Depository Receipts) issued by an Issuer that is not a fund or similar collective investment scheme; or an Index Variance Swap Transaction with a Related Exchange in a Specified Country. Specified Countries are defined as Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland or the United Kingdom.

(Note: The Multiple Exchange Index Annex is intended to override the need to use Exhibit H in the User’s Guide to the 2002 ISDA Equity Derivatives Definitions (EuroStoxx Confirmation Definitions).

Published – June 25, 2007

(Note: this version supersedes version dated March 7, 2007)

Revised 2007 European Variance Swap Master Confirmation Agreement (Clean version)

Revised 2007 European Variance Swap Master Confirmation Agreement (Blackline against March 7, 2007 version)
European Master Equity Confirmation Agreement - The 2007 European Master Equity Confirmation Agreement documents option transactions with respect to a European index or share (includes Multiple Exchange Index Annex and Index/Share Option Annex).

(Note: The Multiple Exchange Index Annex is intended to override the need to use Exhibit H in the User’s Guide to the 2002 ISDA Equity Derivatives Definitions (EuroStoxx Confirmation Definitions).
 Published - May 10, 2007 European Master Equity Confirmation Agreement
2007 European Variance Swap Master Confirmation Agreement - The 2007 European Variance Swap Master Confirmation Agreement is designed to document index and share variance swap transactions with respect to Covered Transactions. Covered Transactions are defined in the agreement as Share Variance Swap Transaction with an Exchange in a Specified Country and on a share (excluding American Depository Receipts and Global Depository Receipts) issued by an Issuer that is not a fund or similar collective investment scheme; or an Index Variance Swap Transaction with a Related Exchange in a Specified Country. Specified Countries are defined as Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland or the United Kingdom.

(Note: The Multiple Exchange Index Annex is intended to override the need to use Exhibit H in the User’s Guide to the 2002 ISDA Equity Derivatives Definitions (EuroStoxx Confirmation Definitions).
 Published – March 7, 2007
 2007 European Variance Swap Master Confirmation Agreement
European Equity Swap Working Group Active ISDA Working Group To join the working group, contact kdarras@isda.org


Japan
SUBJECT
STATUS
AVAILABLE DOCUMENTS
2006 Japan Master Variance Swap Confirmation Agreement - The 2006 Japan Master Variance Swap Confirmation Agreement documents index and share variance swap transactions with respect to a Japanese index or share. Other than with regard to designation of the Calculation Agent, it is identical in terms to the 2006 Japan Interdealer Master Variance Swap Confirmation Agreement. Published - January 22, 2007 2006 Japan Master Variance Swap Confirmation Agreement
Share Variance Swap Confirmation - The Share Variance Swap Confirmation, to be used in conjunction with the 2006 Japan Interdealer Master Variance Swap Confirmation Agreement expands product coverage under the 2006 Japan Interdealer Master Variance Swap Confirmation Agreement to share variance swaps. Published - December 21, 2006 Share Variance Swap Confirmation
2006 Japan Interdealer Master Variance Swap Confirmation Agreement - The 2006 Japan Interdealer Master Variance Swap Confirmation Agreement is designed to document index and share variance swap transactions with respect to a Japanese index or share. Annex IVS published June 30, 2006, Annex SVS published December 21, 2006 2006 Japan Interdealer Master Variance Swap Confirmation Agreement
2005 Japanese Interdealer Master Equity Derivatives Confirmation Agreement - Cash-settled Index Options, Physically-settled Share Options

Revised - April, 2007

 2005 Japanese Interdealer Master Equity Derivatives Confirmation Agreement
2006 Japan Master Variance Swap Confirmation Agreement - Index Variance Swaps
 Published - June 30, 2006 2006 Japan Master Variance Swap Confirmation Agreement
Confirmations for use with the 2002 ISDA Equity Derivatives Definitions - Cash-settled Index Options and Physically-settled Share Options on Japanese Shares for the Japanese Inter-Dealer Market
Published
 Japanese Inter-Dealer Market Templates
Japan Share/Index Option MCA Working Group Active ISDA Working Group To join the working group, contact kdarras@isda.org
Japan Dividend Swap Working Group Japan Dividend Swap Working Group Active ISDA Working Group To join the working group, contact kdarras@isda.org


Other
SUBJECT
STATUS
AVAILABLE DOCUMENTS
2007 Master Bond Total Return Swap Derivatives Confirmation Agreement - The 2007 Master Bond Total Return Swap Derivatives Confirmation Agreement is a form of master confirmation to document total return swap transactions with respect to corporate bonds and related instruments (including convertible bonds, preferred stock and possibly distressed debt). Published - November 7, 2007 2007 Master Bond Total Return Swap Derivatives Confirmation Agreement
2006 ISDA Master Bond Total Return Swap Derivatives Confirmation Agreement - Corporate Debt

Active ISDA Working Group

 To join the working group, contact jschwab@isda.org or kdarras@isda.org
2006 ISDA Master Bond Total Return Swap Derivatives Confirmation Agreement - EM Sovereign Debt
 Active ISDA Working Group To join the working group, contact jschwab@isda.org or kdarras@isda.org

Top of Page

ISDA Comment Letters (by region); Policy Statements; Amicus Briefs

Comment Letters - US
SUBJECT
STATUS
AVAILABLE DOCUMENTS
Joint Association Comment Letter on SEC Rule 144/145 Proposals
 Submitted - September 21, 2007 Joint Association Rule 144 Comment Letter
Industry Associations Release Provider-Distributor Principles on Retail Structured Products
 Published – July 10, 2007 (Press Release) (RSP Principles)
ISDA letter in support of the work done by the World Federation of Exchanges and International Options Markets Association re: adjustments of exchange-traded derivatives following corporate actions

Submitted - June 1, 2006;

CBOE acknowledgement received - June 6, 2006

ISDA Letter

CBOE acknowledgement
ISDA urges the Senate Finance Committee and House Ways and Means Committee to preserve current law "qualified covered call" (QCC) treatment for OTC options. Submitted - May 19, 2004 ISDA Letter to Charles Grassley, Chairman, Senate Finance Committee and Max Baucus, Ranking Member, Senate Finance Committee - S. 1637 (Qualified Covered Calls)

ISDA Letter to Bill Thomas, Chairman, Ways and Means Committee and Charles Rangel, Ranking Member, Ways and Means Committee - S. 1637 (Qualified Covered Calls)

Memo on Qualified Covered Calls
ISDA sent a letter to certain securities exchanges highlighting changes in the 2002 ISDA Equity Derivatives Definitions from the 1996 Definitions Sent - January 2003 Form of letter template
ISDA commented on 2 exposure drafts in connection with FASB’s Liabilities and Equity Project Submitted to the FASB - April 30, 2001 ISDA Letter to Timothy Lucas, Director of Research and Technical Activities, FASB


Comment Letters - UK
SUBJECT
STATUS
AVAILABLE DOCUMENTS
UK consultation on disclosure and CFDs (CP07/20) ISDA response completed. Formal feedback awaited. ISDA response
UK Takeover Panel Consultation on derivatives disclosure. Comment Letter submitted on 2005/3 (Control Issues) and 2005/4 (SARs) -  January 27, 2006 ISDA Comment Letter to the UK Takeover Panel (PCP 2005/3 and 2005/4)
Public Consultation Paper issued by the Code Committee of the Panel on Dealings in Derivatives and Options (PCP 2005/2) Submitted - June 24, 2005 ISDA Comment Letter to the UK Takeover Panel (PCP 2005/2)
UK Takeover Panel Consultation Paper: Dealings in Derivatives and Options: Outline Proposals Relating to Amendments Proposed to be Made to the Takeover Code and the SARS Submitted - February 28, 2005 ISDA Comment Letter to the UK Takeover Panel (PCP 2005/1)
ISDA's representations to Inland Revenue on Proposed New Approach to the Taxation of Derivatives Based on Property and Share Values Submitted - February 10, 2004 Letter to Kunle Ogundele, Business Tax, Inland Revenue
ISDA responded to a UK Financial Services Authority Discussion Paper (DP17) on short selling Submitted - January 29, 2003 ISDA Letter to Margot Marshall, Markets and Exchanges Division, FSA


Comment Letters - Non-US / UK
SUBJECT
STATUS
AVAILABLE DOCUMENTS
ISDA commented on the Proposal of the Fourth Financial Market Enhancement Act - temporary ban of short selling Submitted to the Bundestag March 26, 2002 ISDA Letter to Christine Scheel, Chairperson of the Finance Committee at the German Bundestag


Policy Statements
SUBJECT
STATUS
AVAILABLE DOCUMENTS
Guidance for parties to over-the-counter derivative transactions that are affected by the closing of U.S. exchanges on Tuesday, January 2, 2007 Guidance dated December, 29, 2006 Memo on Guidance
ISDA Statement Regarding Equity Derivatives Transactions Released September 17, 2001 ISDA Statement Regarding Equity Derivative Transactions


Amicus Briefs
SUBJECT
STATUS
AVAILABLE DOCUMENTS
Associations file amicus brief in Enron Corp. v UBS on Safe Harbor Provisions under the U.S. Bankruptcy Code (Brief). Filed - July 21, 2004 Amicus Brief - Safe Harbor Provisions under the U.S. Bankruptcy Code (Enron Corp. v UBS)
ISDA files amicus brief on safe harbor provisions under the U.S. Bankruptcy Code Filed - April 07, 2004 Enron Corp. v CSFB Int'l and CSFB LLC
ISDA files amicus briefs on safe harbor provisions under the U.S. Bankruptcy Code Filed - March 17, 2004 Enron Corp. v Lehman Bros. Fin. S.A. and Enron Corp. and Enron North America Corp. v Bear Stearns International and Bear Stearns Securities Corp.


Top of Page

Miscellaneous Equity Derivatives Committee Information
SUBJECT
STATUS
AVAILABLE DOCUMENTS
Equity Derivatives Market Practice Issues Updated as of March 2008
 Equity Derivatives Market Practice Issues
The New Zealand Court of Appeal overturned the March 14, 2003 decision of the High Court in Ithaca (Custodians) Limited v. Perry Corporation, recognizing market reality. The High Court had ordered the forfeiture of 12 million shares in Rubicon Limited owned by Perry Corporation. ISDA notified Equity Committee - November 4, 2003 N/A
Update - New Zealand's Privy Council refused to hear a final appeal against the November 4, 2003 Court of Appeal decision. The Government has confirmed its intent to change the law with respect to the application of the substantial security holder disclosure regime to equity swaps, the legal issue at the basis of the dispute ISDA notified Equity Committee - March 15, 2004 N/A
SEC Interpretive Letter on Equity Derivatives covering a dealer's hedging in the U.S. markets to forward and option-based derivatives with an issuer on its own shares. ISDA notified the Equity Committee - October 16, 2003 N/A

Top of Page


  Last Updated: March 31, 2008