If your organization uses the International Swaps and Derivatives Association’s documentation, and more specifically, the ISDA Master Agreements, you will find it worthwhile to attend Oak Leaf’s online ISDA Documentation Fundamentals course. Because the ISDA documentation offers parties the ability to trade financial and physical energy products under one master agreement, it allows parties to streamline their negotiations. Nevertheless, despite being standard form documents, they should not be mistaken for contracts of adhesion. ISDA agreements are complex and parties should understand what they are signing and negotiate terms to their liking. Whether you are new to ISDA documentation or have questions on industry standard, this course is for you. We are living in an era of depressed natural gas prices and a pandemic that puts into question the enforceability of contracts. To ensure your organization’s ISDA documentation works to its benefit, you need to understand what your Client is agreeing to and thoughtfully and precisely negotiate the ISDA Master Agreement. Three sessions (2.5 hours each) spent with GuyLaine Charles, a lawyer with over 20 years of financial services experience including derivatives, will introduce you to possible ISDA documentation pitfalls and successful ISDA negotiation strategies. GuyLaine is the expert with answers to the questions that have been puzzling you.
In this course, you will learn:
- The single agreement concept. The structure of the ISDA documentation, how it all works together and the benefit of transacting based on a master agreement.
- The differences between the 1992 and 2002 ISDA and how your Client can address them.
- How to ensure that your counterparty cannot exercise its default remedies based on a technical default on your client’s part.
- How to negotiate adequate assurance provisions to ensure that your client is not subject to unbounded liability.
- In what circumstances a party can declare a Force Majeure under an ISDA Master Agreement.
August 10, 12, 14, 2020. 8:30 am – 11:15 am (Mountain) each day
Price: $1195 + GST
Instructor — GuyLaine Charles
ISDA & NAESB Suite: August 3, 4, 5, 10, 12, 14, 2020.
NAESB & ISDA Documentation
Instructor — GuyLaine Charles
Price: $2195 + GST
Prior to the course, we will provide you with course material. However, for copyright reasons, Oak Leaf is unable to provide copies of the ISDA documentation. We therefore request that you please have the following documents in front of you during the course:
- The ISDA Master Agreement either the 2002 or 1992, together with the Schedule.
- The ISDA North American Gas Annex, together with:
- Canadian Addendum
- 009 Amendment addendum
- Confirmation Template
- Anatomy of the 2002 ISDA Master Agreement – Section by Section Review of ISDA Master Agreement Provisions
- Differences between the 1992 and 2002 ISDA Master Agreements
- “Top 10” Negotiated Issues under the 2002 ISDA Master Agreement
- Practical Exercises
- Credit Support Annex
- ISDA Gas Annex
- Overview of the ISDA Commodity Definitions
- Implications of the legislative changes implemented or contemplated with respect to over-the-counter derivatives
- Closing Remarks
Key Learning Objectives
- Introduction to the ISDA agreement architecture as it relates to energy transactions
- Section-by-section review of the 2002 Master Agreement and how it differs from the 1992 Master Agreement
- Analysis of the 2005 Commodity Definitions, the Credit Support Annex (“CSA”), and the Gas Annex
- Introduction and analysis of practical issues – “Top 10” negotiated issues under the ISDA Master Agreement and “Top 5” issues under the CSA and Gas Annex