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
Joint Trades Submit Letter to BCBS Calling for Recalibration of Cryptoasset Prudential Standards
ISDA, in partnership with a coalition of leading global financial trade associations (“Joint Trades”), and with advisory support from Boston Consulting Group (BCG), Ashurst, and Sullivan & Cromwell, submitted a letter to the Basel Committee on Banking Supervision (BCBS). The...
ISDA Response on Common Carbon Data Model
On August 12, ISDA responded to a consultation from the Climate Data Steering Committee (CDSC) on a Common Carbon Credit Data Model. ISDA members believe the Group-of-20 carbon data model initiative is a positive step in addressing data gaps and...
Joint Response on RBA Consultation
On August 11, ISDA and FIA submitted a joint response to the Reserve Bank of Australia (RBA) on its consultation on guidance for Australia’s clearing and settlement facility resolution regime. The associations welcome publication of the draft guidance, which provides...
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...