Irish Law ISDA Master Agreement Published

On 3 July 2018 the International Swaps and Derivatives Association (ISDA) published Irish and French law governed versions of its 2002 ISDA Master Agreement as part of the organisation’s efforts to assist derivatives market participants “future-proof” against the uncertainties created by the UK’s exit from the EU.

ISDA noted when launching the new ISDA Master Agreements that after the UK withdraws from the EU English law may become a third-country law, meaning English court decisions would no longer be automatically recognized and enforced across the EU and EEA. The introduction of the Irish law ISDA Master Agreement will provide market participants the option to shield themselves from the uncertainties of Brexit by giving them the ability to continue to transact derivatives under the laws of a common law EU Member State that will benefit from the automatic recognition of judgments across the EU, obviating the prospect of EU courts potentially reopening cases already decided by the English courts.

Producing an Irish law version of the ISDA Master Agreement was the natural choice from a common law perspective. Due to the close similarities between the Irish and English legal systems, there are minimal differences between the Irish and English law ISDA Master Agreement and related credit support documents. The Irish law ISDA Master Agreement will give institutions the choice to continue trading using documentation that looks and feels the same as their existing trading documentation with the added comfort that disputes can be resolved before English language courts that often look to the decisions of the English courts when considering equivalent matters.

 

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