1998 FX and Currency Option Definitions

The 1998 FX and Currency Option Definitions are jointly published by ISDA, EMTA and the Foreign Exchange Committee and are intended for use in confirmations of individual transactions governed by (i) the 1992 ISDA Master Agreements; (ii) the International Foreign Exchange and Options Master Agreement ("FEOMA"), the International Foreign Exchange Master Agreement ("IFEMA") and the International Currency Options Market Master Agreement ("ICOM"), each published by the Foreign Exchange Committee in association with the British Bankers Association, the Canadian Foreign Exchange Committee and the Tokyo Foreign Exchange Market Practices Committee; and (iii) other similar agreements.

The purpose of these Definitions is to provide the basic framework for the documentation of privately negotiated FX and currency option transactions, including those transactions previously documented under the 1992 ISDA FX and Currency Option Definitions. These Definitions are an expansion of the 1992 Definitions and cover a wider range of currencies and transactions. The most significant new concepts are the inclusion of certain Disruption Events and Disruption Fallbacks, which enable parties to a transaction to allocate certain event risks by providing an agreed-upon method for settling a transaction upon the occurrence of those events. These concepts may be applicable to certain currency transactions, such as those involving emerging market currencies.

These Definitions consist of a booklet, which contains provisions that are not expected to change frequently, and a three-ring binder, which contains provisions that are expected to be supplemented as needed.

Two technical revisions have been made to the 2005 Barrier Option Supplement to the 1998 FX and Currency Option Definitions (“2005 Supplement”) which was first published on December 6, 2005. The first revision suggests how to incorporate the 2005 Supplement into a Barrier or Binary Option Transaction.

The second revision further describes the approach taken to the conventions for stating Currency Pairs in the Currency Pair Matrix that was published with the 2005 Supplement.

The 2005 Barrier Option Supplement to the 1998 FX and Currency Option Definitions (the “2005 Supplement) will enable market participants to readily document a variety of barrier and binary options under the framework of the 1998 Definitions. The 2005 Supplement sets forth common reference terms for a growing sector of the foreign exchange marketplace and should offer the benefits of efficient documentation processes and enhanced legal certainty to market participants.

Exhibits to the 2005 Supplement illustrate how barrier and binary options may be confirmed under its terms, and accompanying Practice Notes explain its provisions. Matrices with best practice recommendations for specifying certain confirmation terms under the 2005 Supplement also are being published and will be updated periodically by the co-sponsors.

Compendium of Amendments to Annex A to the 1998 FX and Currency Option Definitions
(April 16, 2008)

The Compendium includes all amendments to Annex A to the 1998 FX and Currency Option Definitions that were published electronically since June 20, 2001.

Supplements to Annex A of the 1998 FX and Currency Option
Definitions

November 15, 2007 – ISDA, EMTA and the FXC jointly announce amendment to Annex A – Peruvian Sol (PDF Format)

October 25, 2006 – ISDA, EMTA and the FXC jointly announce amendment to Annex A – Indian Rupee and Philippine Peso (PDF Format)

August 1, 2006 – ISDA, EMTA and the FXC jointly announce amendment to Annex A - Chilean Peso, Colombian Peso and Peruvian Sol (PDF Format)

April 3, 2006 – ISDA, EMTA and the FXC jointly announce amendment to Annex A Korean Won Rate (PDF Format)

March 6, 2006 – ISDA, EMTA and the FXC jointly announce an updated amendment to Annex A Chinese Renminbi Definition (PDF Format)

November 7, 2005 – ISDA, EMTA and the FXC jointly announce amendment to Annex A Chinese Renminbi Definition (PDF Format)

July 1, 2005 - ISDA, EMTA and the FXC jointly announce amendment to Annex A Indonesian Rupiah Rate Source Definition
(PDF Format)

July 1, 2005 - ISDA, EMTA and the FXC jointly announce new Malaysian Ringitt Rate Source Definition
(PDF Format)

July 1, 2005 – ISDA, EMTA and the FXC jointly announce amendment to Annex A Romanian Leu currency definition
(PDF Format)

May 20, 2005 - ISDA, EMTA and the FXC jointly announce amendment to Annex A Russian Ruble Rate Source Definitions
(PDF Format)

December 30, 2004 - ISDA, EMTA and the FXC jointly announce amendment to Turkish Lira currency definition
(PDF Format)

December 10, 2004 – Memo to ISDA Members regarding the Redenomination of Turkish Lira
(PDF Format)

November 1, 2004 - ISDA, EMTA and the FXC jointly announce amendment to Annex A Rate Source Definitions
(PDF Format)

February 18, 2004 - Brazilian Rate Source Definitions Amended
(Press Release)

December 02, 2003 - Korean Won Rate Source Definitions Amended
(Press Release)

March 03, 2003 - Taiwanese Dollar Rate Source Definitions Amended
(Press Release)

December 20, 2002 - Argentine Peso Rate Source Definitions Amended
(Press Release)

July 10, 2001 - Argentine Peso Rate Source Definitions Amended
(Press Release)

June 21, 2001 - Korean Won Rate Source Definition Amended
(Press Release)

February 1, 1999 - Brazilian Real Rate Definition Published (superseded)
(Word Document Format)

October 14, 1998 - Revised Ruble Rate Definition Published (superseded)
(Word Document Format)

September 11, 1998 - Ruble Rate Definition Published (superseded)
(Word Document Format)

Revised Annex A to 1998 FX and Currency Option Definitions

Annex A contains currency and currency spot rate definitions and other related definitions and provisions for use in documenting foreign exchange and currency option transactions, including non-deliverable transactions, under the 1998 Definitions.

The revised Annex A, dated and effective September 25, 2000, incorporates all previously issued amendments to the March 1998 version of Annex A. In addition, obsolete rate source definitions have been deleted, several new rate source definitions have been added and modifications have been made to existing rate source definitions to render them more accurate.

Other terms have been revised in the September 25, 2000 version of Annex A to better reflect market practice in the non-deliverable foreign exchange markets. Most notably, the definition of currency-reference dealers has been revised to differentiate between the polling procedures to be carried out when that term is used in the ordinary course to determine a settlement rate, as opposed to when that term is used as a fallback rate mechanism upon the occurrence of a market disruption. The definition of Specified Amount has also been revised.