Master Agreement Research Articles

From the Global ISDA Master Agreement to the Chinese version of NAFMII: A Standard form Contract as the Source of Legal Transplant, Irritation, and Integration

From the Global ISDA Master Agreement to the Chinese version of NAFMII: A Standard form Contract as the Source of Legal Transplant, Irritation, and Integration

Foreign Exchange Committee Master Agreements as International Contractual Standards for Foreign Exchange Derivatives

INTRODUCTION. The ISDA Master Agreement is possibly the most authoritative cross-border contractual standard in the world of financial markets. It also serves as an example for the local transactional documentation drafters in various countries to regulate the conclusion and performance of over-the-counter derivatives transactions by means of bilateral contracts. However, international master agreements for derivatives and other financial products are not limited to the templates produced by International Swaps and Derivatives Association (ISDA). Foreign Exchange Committee (FXC) suggests a remarkable alternative to the documents maintained by this powerful industry club as far as transactions with foreign currency are concerned.MATERIALS AND METHODS. International Foreign Exchange and Currency Option Master Agreement (IFXCO) and other FXC master agreements served as primary sources of the present article. Its methodological base is represented by general scientific methods (analysis, synthesis, induction, deduction) as well as specific legal research methods. In particular, formal legal method was employed for the literal interpretation of the provisions of FXC standard documentation, historical method was invoked to describe the evolution of standard FXC templates, while comparative legal method was used to undertake a comparative analysis of insolvency laws where appropriate.RESEARCH RESULTS. The article gives a general overview of master agreements in financial markets to put FXC documentation into a broader context of standard contracts publication in financial markets. The analysis of FXC master agreements is carried out through conclusion and performance of FX transactions as well as risk mitigation mechanisms analysis such as close-out netting and collateral. Moreover, the article covers governing law and enforceability issues as well as puts FXC documentation into Russian legal context. Although Russian court, with a high degree of probability, will recognize the choice of governing law made by the parties to the relevant master agreement published by FXC, the enforceability of collateral and close-out netting provisions amidst the bankruptcy of a Russian entity is not secured due to non-recognition of FXC documentation by the Russian authorities.DISCUSSION AND CONCLUSIONS. Author comes to conclusion that despite FXC master agreements are not able to compete with ISDA documentation. However, they are popular with certain financial institutions active in foreign exchange markets. To facilitate the development of Russian financial market the list of recognized master agreements should be broadened by addition of documentation produced by FXC. Arguably, it is necessary to amend these provisions and make them compliant with UNIDROIT as well for the purposes of transactions with banks from the countries considered “friendly” to Russia.

The development of an insolvency privilegle for derivatives in German law

The article outlines the development of insolvency privilege with respect to derivatives under German law in its historical perspective. It traces the evolution of special privilege from the moment when it was first announced in the German insolvency statute (Insolvenzordnung) and came into force on August 1, 1994, up to the moment when legislative provisions securing the functioning of derivatives in insolvency context were amended in response to the 2016 Federal Court of Justice Verdict. This court ruling ended the long-standing consensus on “friendliness” of the German insolvency law to derivatives and other financial transactions. German highest court concluded that contractual clauses on the termination of obligations under derivative contracts in the event of bankruptcy are invalid unless their legal result is identical to the one prescribed by law. This court decision created significant legal uncertainty for recognition of claims under derivative transactions and directly influenced the use of standard master agreement for over-the-counter derivatives. Drafted under the auspices of the German Banking Union (GBU), an organization representing the interests of German financial institutions, German Master Agreement for Financial Derivatives Transactions ( Deutscher Rahmenvertrag fur Finanztermingeschäfte ) provided a contractual framework for the relevant market, and it came under significant pressure. Overall, German insolvency rules were significantly enforced to achieve the enforceability of close-out netting thus expanding the insolvency privilege for derivative transactions.

The ISDA Master Agreement and the Recognition of a Latent Contractual Network

Abstract It is argued that contract law has yet to develop a coherent approach for recognising networks. This article uses the International Swaps and Derivatives Association Master Agreement, along with the systems which have been developed around it, as a case study for contractual networks which exist at the peripheries of current conceptions, partially recognised by law but also developing private technological solutions to augment their connectivity.

The prospects of istijrar financing in Islamic banking: an exploratory study in Bangladesh

PurposeThis study aims to explore the prospects of istijrar financing in the Islamic banking of Bangladesh. Istijrar is a supply sale contract that facilitates recurrent transactions under a master agreement without needing a deal-to-deal agreement. Murabahah financing in Bangladesh is being criticized for Shari’ah violations, which can be minimized if istijrar financing is integrated and applied.Design/methodology/approachThe study uses a qualitative approach, primarily using a semistructured interview method to collect the primary data. The study conducted 13 one-to-one interviews with leading Islamic banking experts in the country, including Shari’ah scholars, Islamic bankers and regulators. Besides, the study consults with classical and contemporary fiqhi sources to realize the status of istijrar sale in Islamic law. Thematic analysis is performed to explore the qualitative data.FindingsThe study finds that istijrar financing has great prospects in the Islamic banking of Bangladesh. Istijrar is applicable in consumer financing and can be offered as an alternative or supplement to murabahah. Also, postimport murabahah financing can be structured with istijrar, while it can also be used in export financing. Besides, a few challenges should be dealt with before offering istijrar, such as proper structure, lack of literacy, stakeholders’ awareness, Shari’ah and regulatory approval and alignment with the law of the land.Practical implicationsMurabahah financing is dominant on the asset side of Islamic banks’ balance sheets in Bangladesh. Murabahah practice in Bangladesh is frequently criticized for some possible Shari’ah violations. Also, more documents are needed for each murabahah operation, which eventually accelerates the costs. Applying istijrar would minimize these issues as it does not require a new contract for each deal. Multiple supplies can be done under a single agreement. Besides, istijrar reduces documentation hassle and transaction costs. Istijrar would be an easy practice and benefit the bank and its clients.Originality/valueThis study contributes to the body of knowledge and the Islamic banking industry. The existing studies have not adequately addressed the potential of istijrar in Islamic banking. In addition, this study will be an eye-opener for Islamic bankers to develop new products with istijrar.

Neither relational nor discrete: the ISDA Master Agreement as a bimodal contract

Neither relational nor discrete: the ISDA Master Agreement as a bimodal contract

Trust, Confidence, and Automation: The ISDA Master Agreement as a Smart Contract

The International Swaps and Derivatives Association (ISDA) Master Agreement (MA) is the prevailing contract in the Over-the-Counter (OTC) derivatives market. Its efficacy derives from, inter alia, the network effect. As the OTC derivatives market expanded so did users of the MA. During and after the MA’s creation, the market underwent extensive deregulation and the standard-form agreement soon filled the lacuna left by retreating regulation. Its ubiquity in the market has created a level of trust and confidence, not only in the terms of the MA itself but between parties which may not have otherwise entered into a business relationship. With the impending introduction by ISDA of a smart contract version, this article investigates whether automation will harmonize or disrupt trust and confidence in the MA. ISDA, derivatives, standard-form, trust, confidence, smart legal contracts

Relationship between Anorexia Nervosa and Less Weight: A Medication Treatment Analysis

Anorexia nervosa is an eating disorder causing people to obsess about weight and what they eat. It is a characterized by a distorted body image with a fear of overweight. This causes abnormally low body weight. People with anorexia has an intense fear of gaining weight and distorted perception of weight. It mainly of two types-
 
 I) RESTRICTING- where person loses weight by severe limitation of food intake.
 ii) BEINGE/PURINGING- in which there are periods of food intake that are compensated by self induced vomiting, laxative or diuretic abuse or excessive exercise.
 
 Signs maybe behavioral or physical like obsessing about weight, weight gain fears, eating only low calorie food, bloated, constipated, irritable, distracted and not able to concentrate.
 It is prevalent in young women and teenage girls. People consider anorexia nervosa in connection with females but it can affect people of any sex or gender. Master agreement is for intricate, broad, long haul medicines that utilization a comprehension of the brain Physiology, precise standards and methods acquired from persuasive support treatment and argumentative conduct treatment. These therapies ought to be acted in various settings that meet the degree of power and level of management and clinical consideration required. There is a need to arrange crafted by a wide scope of clinical and mental administrations which frequently don’t cooperate. Due to the age bunch included and the also time span included, patient consideration frequently goes through many changes. This is the pinnacle of backslide and decompensation.

Close-out netting in the European Union: contract practice and unification of legal regulation

The article focuses on the general characteristics of the European Union legal framework pertaining to close-out netting; it offers analysis of standard documentation provisions used within European Union for netting. Close-out netting is the process of termination of financial transactions by the parties in case of violation of obligations under master agreements, often with participation of banks and other financial institutions. Currently, EU legislation on netting consists of two major parts (regulatory regimes): the prudential regime and the insolvency regime. The former addresses banks and financial institutions regulating requirements for financial ratios and capital adequacy of these organizations. The insolvency framework is the most complex of the said legal regimes as it is comprised of various directives and regulations affecting performance of netting in the course of bankruptcy procedures. In recent years, the insolvency regime has undergone immense change marking the transition from unconditional legislative support of netting without any exemptions to a more balanced approach aimed at limiting close-out netting possibilities with respect to systematically important financial organizations.

THE POSITION OF THE WTO VALUATION AGREEMENT AND INTERNATIONAL AGREEMENTS REGULATING CUSTOMS VALUES FROM THE THEORY OF APPLICABILITY OF INTERNATIONAL LAW

There is a problem in regulating the customs value in the Customs Law which contains only one article regarding the definition of customs value and rules for alternative valuation methods. Various other provisions in the WTO Valuation Agreement are not contained in the Customs Law. In order to provide clarity about the legal position of the WTO Valuation Agreement and various international instruments regulating customs values, it must be studied with the theory of the validity of international law. In terms of the theory of international law enforceability, it is concluded that the WTO Valuation Agreement has been ratified by the Law on WTO ratification and transformed by the Customs Law. Likewise, for the WTO Ministrerial Decision, even though it is separate from the WTO Valuation Agreement, because it is part of the WTO Agreement, its enforceability status and legal force are the same as the WTO Valuation Agreement. As for the legal products of the World Customs Organization (WCO) in the form of Advisory Opinions, Commentaries, Explanatory Notes, and Case Studies, they do not require validation, because they contain material of a technical nature or a technical implementer of the master agreement. In practice it can be considered by the judge because the material contained therein is considered international best practice.

Temeljni prikaz izvedenica uz poseban osvrt na opcije, opcijske i s njima povezane tipske ugovore

The paper offers a general overview of options within the definition of financial derivatives. The manner of concluding an options contract, its legal characteristics and nature are presented in the light of the Croatian substantive law. In the overview of the types of options, the author analyzes the options prescribed by or incorporated into Croatian laws (e.g. Company Act, Takeover Act, Capital Market Act). After a general presentation and analysis of the ISDA documentation for derivatives, the history, overview and main legal issues related to the Croatian Master Agreement for financial derivatives developed within the Croatian Banking Association and ACI Croatia are elaborated. The analysis conducted in this paper demonstrates that the basic legal institutes on which the ISDA Master Agreement is based are also provided in Croatian law or in applicable EU law. All this leads the author to the conclusion that the Local Framework Agreement for Transactions with Financial Derivatives provides a reasonable tool in terms of significant reduction of legal risks and enables reasonable management of other risks to which contractors are exposed when concluding transactions with derivatives.

Contracts as Regulation: The ISDA Master Agreement

This article proposes a rule of contractual interpretation for regulatory contracts defined as contracts 1) used by a large number of market participants, 2) subject to limitations on deviation, and 3) designed with market problems (such as negative externalities) in addition to transactional problems (such as transaction costs) in mind. The rule states that the outcome of the interpretation of regulatory contracts must not be inconsistent with the objectives of the regulatory framework applicable to the market in which the contract is used. The article suggests that the reliance on that rule is normatively justified in cases where the regulatory objectives are clearly defined and particularly when the alternative outcome is to void the contract or its provision. By adopting the regulatory rule for contract interpretation, courts can preserve the autonomy of private regulatory regimes created through contracts without sacrificing public policy objectives. Several examples of the application of the rule to the interpretation of selected provisions of the ISDA Master Agreement and the ISDA Credit Definitions are discussed.

2021 NAESB Annual Standards Development Forecast

This year, hundreds of natural gas and electric entities anticipate working through the North American Energy Standards Board (NAESB) process to standardize the use of business protocols and advanced technologies that will benefit their industries. These business practice standards include ones to enhance cybersecurity protocols, form a basis for responding to orders from the Federal Energy Regulatory Commission (FERC), facilitate the use of blockchain in communication and accounting processes, and establish a Renewable Energy Certificate (REC) Master Agreement. This article will provide an overview of NAESB as well as a brief look at the goals of the natural gas and electricity industries in 2021, as detailed in the NAESB 2021 annual plans.

Trust, Confidence, and Automation: the ISDA Master Agreement as a Smart Contract

Trust, Confidence, and Automation: the ISDA Master Agreement as a Smart Contract

Contracts as regulation: the ISDA Master Agreement

This article proposes a rule of contractual interpretation for regulatory contracts defined as contracts 1) used by a large number of market participants, 2) subject to limitations on deviation, and 3) designed with market problems (such as negative externalities) in addition to transactional problems (such as transaction costs) in mind. The rule states that the outcome of the interpretation of regulatory contracts must not be inconsistent with the objectives of the regulatory framework applicable to the market in which the contract is used. The article suggests that the reliance on that rule is normatively justified in cases where the regulatory objectives are clearly defined and particularly when the alternative outcome is to void the contract or its provision. By adopting the regulatory rule for contract interpretation, courts can preserve the autonomy of private regulatory regimes created through contracts without sacrificing public policy objectives. Several examples of the application of the rule to the interpretation of selected provisions of the ISDA Master Agreement and the ISDA Credit Definitions are discussed.

The Canadian Pediatric Cardiology Research Network: A Model National Data-Sharing Organization to Facilitate the Study of Pediatric Heart Diseases

BackgroundCommon hurdles to pediatric cardiology research include the heterogeneity and relative rarity of specific cardiac malformations, the potential for effect of residual lesions occurring decades after repair, and the scarcity of objective and easily measurable outcomes such as death and transplantation. MethodsTo help meet these challenges, the Canadian Pediatric Cardiology Research Network (CPCRN) was founded by the Canadian Pediatric Cardiology Association to link Canadian academic institutions to promote and facilitate multicollaborations for the benefit of pediatric and congenital cardiology research. The overarching goal of the CPCRN is to build a national framework that harnesses the strong desire for collaboration within the pediatric cardiology community and to identify solutions to barriers that impede multicentre partnerships. ResultsIn this report, the authors describe the approach and the components of the CPCRN. Specifically, we detail the rolling out of a pan-Canadian master agreement that covers current and future studies, the systematic banking of all project data, and the mechanisms developed to facilitate secondary use of data. ConclusionsThis experience could help guide the formation of other national research groups, particularly those focused on congenital or rare diseases.

Concomitant Filled Prescriptions of Oxymorphone or Oxycodone with CYP3A Inhibitors and Inducers.

Oxymorphone's metabolism does not involve the hepatic cytochrome P450 (CYP) system. The effect of this pharmacokinetic feature of oxymorphone on opioid prescribing is unknown. To assess the relative frequency with which oxymorphone and oxycodone (a CYP3A-metabolized opioid analgesic) were each prescribed to patients concomitantly receiving CYP3A-modifying drugs (i.e., inducers and inhibitors) to characterize opioid-prescribing patterns in patients at risk for CYP3A-related drug interactions. We analyzed the Sentinel Distributed Database from January 1, 2013, to December 31, 2016, to identify the proportion of patients with concomitant dispensing of selected CYP3A modifiers among initiators of oxymorphone. We then repeated the analysis using oxycodone instead of oxymorphone. We conducted sensitivity analyses that varied the washout periods for each opioid to account for potential opioid switching. In the primary analysis, the proportion of patients with concomitant incident dispensings of oxymorphone and selected CYP3A modifiers was 3.26% (95% CI = 3.09%-3.43%), and the proportion of patients with incident dispensings of oxycodone and selected CYP3A modifiers was 2.82% (95% CI = 2.79%-2.85%). The difference between proportions was 0.43% (95% CI = 0.26%-0.60%). Sensitivity analyses that varied the washout periods for each opioid with respect to the other opioid to account for switching yielded similar results. We observed similar proportions of patients using selected CYP3A modifiers concomitantly with both oxymorphone and oxycodone. While the CIs of the point estimates did not overlap, the absolute differences between the proportions were small. This project was supported by Task Order HHSF22301001T under Master Agreement HHSF223201400030I from the U.S. Food and Drug Administration (FDA). The FDA approved the study protocol, including the statistical analysis plan, and reviewed and approved the manuscript. Coauthors from the FDA participated in the results interpretation and in the preparation and decision to submit the manuscript for publication. Coyle, Money, Staffa, Meyer, and Woods are employed by the FDA. The other authors have no financial conflicts of interest to report. The views expressed are those of the authors and not necessarily those of the U.S. Department of Health and Human Services, U.S. Food and Drug Administration.

Republika Srbija kao ugovorna strana ISDA okvirnog ugovora o trgovanju finansijskim derivatima

Циљ рада је да укаже на посебности регулативе трговања финансијским дериватима на ОТЦ тржишту када је уговорна страна Република Србија. Фокус аутора је, пре свега, на анализи могућности Републике Србије да буде уговорна страна ISDA оквирног уговора о трговању финансијским дериватима, узевши у обзир распрострањеност управо овог модел-уговора када су у питању послови са финансијским дериватима на ОТЦ тржишту. Аутор у првом делу рада даје општи преглед ISDA оквирног уговора о трговању финансијским дериватима, скрећући пажњу на посебна места у овом модел-уговору и његов историјски развој. У другом делу рада образложили смо српску позитивноправну регулативу у вези са трговањем финансијским дериватима на ОТЦ тржишту са Републиком Србијом и тај преглед је претежно инспирисан доношењем новог подзаконског акта у овој области крајем 2019. године. Посебан осврт и анализа појединих кључних места спроведени су и у погледу прописа који регулишу буџетски систем, јавни дуг, девизно пословање, јавне набавке и финансијска обезбеђења.

Accelerating advanced precision medicine through a harmonized data exchange platform and research consortium (PMEC).

6557 Background: Clinico-genomic data sharing is consistently identified by the global oncology community as a critical requirement to accelerate the discovery and development of new targeted therapies. However, lack of effective collaborative models, fragmented and lengthy legal contracting processes, paucity of funding, and inadequate technological platforms have historically been obstacles for effective data sharing. Methods: In 2015, 10 US academic medical centers (AMC) and Foundation Medicine Inc. (FMI) formed PMEC. Feasibility assessments included creation of a master agreement across sites and willingness to use a central IRB. Oversight and research steering committees were created within the consortium. Through a centralized, secure web-based platform, FoundationInsight, we combined and shared de-identified, harmonized comprehensive FoundationOne genomic profiling data. Research proposals mining this data warehouse are invited quarterly from participant AMCs and peer-reviewed; approved studies are executed at all sites. Results: All 10 AMCs collaborated to execute a master registry participation agreement, followed by a master IRB protocol (New England IRB # 120180008), subsequently approved by individual site IRBs. Since its launch, the PMEC database has grown, on average, 60% per year, to now house over 14,000 cases. The shared dataset covers all tumor types (most commonly lung [17.2%], gastrointestinal [13.8%] and breast [9.2%]), encompasses genomic alterations in >300 genes, and reports relevant supplementary data such as tumor mutation burden and microsatellite instability status. To date, 15 studies have been proposed and evaluated using this platform, with 2 projects currently approved and in progress. Conclusions: We demonstrated the feasibility of creating a collaborative academic consortium that facilitates data sharing and potential discovery efforts in oncology. Technology solutions can accelerate the ability of AMCs, in partnership with central labs, to share and harmonize data to advance precision medicine. This approach lays the groundwork for conducting prospective, biomarker-enriched clinical trials among participating AMCs.

No second bite at the ISDA valuation cherry: Lehman Brothers Special Financing Inc v National Power Corporation

... A party closing out a 2002 ISDA Master Agreement must use commercially reasonable procedures to determine the close-out amount that is due in order to produce a commercially reasonable result but what standard of reasonableness applies? Is it enough to show that there was no irrationality or bad faith or does the determination have to be justifiable on objective grounds? And if it turns out that an error was made, can the determining party correct it by providing a revised calculation statement? The occasion for these issues to be considered was the termination, following the collapse of the Lehman Brothers group, of a currency swap between National Power Corporation (NPC) and Lehman Brothers Special Financing Inc (LBSF). NPC was required to determine the close-out amount that was due under the Agreement and so, on the Early Termination Date, it sought (and received) three indicative quotations for a replacement transaction. These were followed up, four days later, by a series of firm quotations from the same dealers and, the following week, NPC entered into a replacement transaction with the dealer that had offered the most favourable terms. NPC’s original calculation statement had demanded a close-out amount based on the cost of the transaction it had entered into. However, it sought to withdraw this and make a revised determination based on the ‘indicative’ quotation originally offered by that dealer. This was less favourable to NPC than the price it eventually accepted and so it sought to increase the amount it claimed from LBSF.