In December 2019, ISDA published a white paper (available here) examining the unique aspects of derivatives transactions that can present issues in interpreting how sanctions programs should apply in the context of derivatives and analyzed these issues in the context of recent sanctions program experiences. The white paper proposed principles to ensure the continued safe operation of derivatives markets and minimize market disruption and economic consequences for non-sanctioned entities, while neither compromising foreign policy or national security goals, nor conferring any benefit on sanctioned entities or otherwise harming the objectives of any sanctions program.
While ISDA’s standard form agreements, definitional booklets and confirmation templates include provisions that might be activated by sanctions, these documents have not specifically addressed the potential unique consequences of novel economic sanctions programs on derivatives counterparties or transactions (as further outlined in the white paper). This guidance note therefore considers when parties may wish to include specific provisions addressing sanctions issues in ISDA documentation, explains the purpose of these provisions and provides example provisions that can be adapted by parties for use in their negotiated agreements.
Click on the attached PDF to read the guidance note.
Documents (1) for ISDA Guidance Note for Addressing Sanctions Issues in ISDA Documentation
Latest
SwapsInfo H1 2025 and Q2 2025
Interest rate derivatives (IRD) trading activity increased in the first half of 2025, driven by continued interest rate volatility, evolving central bank policy expectations and persistent macroeconomic uncertainty. Trading in index credit derivatives also rose, as market participants responded to...
ISDA Response to IFSCA Consultation
On August 5, ISDA responded to the International Financial Services Centres Authority’s (IFSCA) consultation on reporting and clearing of over-the-counter (OTC) derivatives contracts booked in International Financial Services Centres (IFSC). In the response, ISDA provided the following recommendations: Not mandating...
ISDA Response to BIS on Tokenization
On July 30, ISDA submitted a response to a Bank for International Settlements (BIS) consultation on leveraging tokenization for payments and financial transactions. In the response, ISDA focused on the legal, regulatory and documentation issues relevant to the derivatives market,...
ISDA In Review – July 2025
A compendium of links to new documents, research papers, press releases and comment letters published by ISDA in July 2025.