• How to Use the ISDA Master Agreement
  • May 1, 2003 | Authors: Craig R. Enochs; Fundi A. Mwamba
  • Law Firm: Jackson Walker L.L.P. - Houston Office
  • As energy transactions have become more sophisticated, over-the-counter ("OTC") derivatives have emerged as valuable tools to limit the risk and optimize the value of these transactions. This article provides a basic background on derivatives; provides an overview of the Master Agreement; recounts a brief history of the ISDA and Master Agreement; explains the advantages gained by using the Master Agreement and the ISDA Credit Support Annex to the Master Agreement ("Annex") for OTC derivative transactions; describes the contract architecture of the Master Agreement; and addresses practical considerations associated with successfully negotiating a Master Agreement.