ISDA has published new French and Irish law versions of the ISDA Master Agreement, adding to the existing suite of English, New York and Japanese law choices.
The new Master Agreements are intended to provide options for those institutions that would prefer to continue trading under a European Union (EU) member-state law with EU court jurisdiction clauses once the UK leaves the EU.
English law may become a third-country law after the UK withdraws from the EU, which means English court decisions would no longer be automatically recognized and enforced across the EU and European Economic Area (EEA). That wouldn’t be the case for French or Irish law court judgements under the new Master Agreements, reducing the steps involved in settling a contractual dispute with an EU/EEA counterparty.
By trading under a French or Irish law Master Agreement, counterparties will also retain certain protections that only apply to agreements governed by an EU/EEA member-state law. For example, some EU national insolvency laws require contracts to be subject to EU/EEA law in order to qualify for safe harbor protections following a bankruptcy.
“An English law Master Agreement won’t become any less valid in the EU post-Brexit, irrespective of the outcome of the Brexit negotiations. There will be good reasons for EU/EEA counterparties to continue using the English law Master Agreement, and there will be good reasons for them to start using the French and Irish law versions. This is all about providing choice to the market and allowing counterparties to choose the option that best suits their needs,” said Katherine Tew Darras, ISDA’s General Counsel.
French and Irish law were selected in order to represent both civil law and common law systems. Both legal frameworks also support the feasibility of ISDA protocols, which allow multiple agreements between adhering parties to be modified in an efficient and scalable way. Alongside publication of the new Master Agreements, ISDA has also updated the relevant netting opinions.
The French and Irish law Master Agreements are available in the ISDA Bookstore.
Documents (1) for ISDA Publishes French and Irish Law Master Agreements
Latest
ISDA SIMM EU Regulatory Approval Requirements
ISDA published ISDA SIMM version 2.7+2412 on May 22 – the first recalibration under the new semiannual cycle. The release triggered a new requirement for EU counterparties to apply for regulatory authorization to use the model – a submission that...
Creating Value - IQ June 2025
Ever since its establishment 40 years ago, ISDA has worked to enhance the safety and efficiency of derivatives markets. That has motivated everything we do – from the development of standard documentation and the rollout of new digital solutions to...
Paper on EC’s Sustainability Omnibus Proposal
On June 9, ISDA published a position paper setting out its views on the European Commission’s (EC) Sustainability Omnibus Package. In the paper, ISDA urges European authorities to: Ensure a proportionate, harmonized and symmetrical approach to the use of derivatives...
Bulk Adherence Upload Page
Please download the attached Excel worksheet and fill out a separate row for each adherence. Then select and upload your completed file using the buttons below. If any errors are found, please correct and re-upload. Please allow the process time...