Simon Fawell

The new 2021 ISDA Interest Rate Derivatives Definitions: the end of discretion?

The publication of the new 2021 ISDA Interest Rate Derivatives Definitions (2021 Definitions) marks the first comprehensive update of ISDA’s definitions booklet for interest rate products since the publication of the 2006 ISDA Definitions (2006 Definitions) in January 2007. It is a significant undertaking, making a very wide variety of changes to take account of, among other things, benchmark reform, the new regulatory environment for bank resolution, the introduction of collateral rules and central clearing. In addition, there will also be a new electronic ISDA user interface called MyLibrary which will be updated as changes are made to the definitions. This article analyses the changes to the cash settlement provisions.