Review & Analysis of Templates

Review and analysis of templates used for master agreements and confirmations

It is very important for templates used with master agreements and for confirmations to be regularly reviewed. An annual review, for instance, would prevent such templates becoming stale.

Sometimes templates for these documents are put in place many years before (particularly in the case of Master Agreement Schedules and Credit Support Annexes although since the banking crisis the latter have usually been revisited). Market standards can change as well as clients’ own internal policies in the interim. What may have been a client’s preferred position in the past may not be the case now or in the future. Different offices of the same institutions using different “standard” templates can also confuse the issue particularly where the changes are not jurisdiction specific. In addition, separate templates are often required for different entity types (e.g. Corporates, Hedge Funds) as terms can vary significantly.

DDL has regularly been asked to review and update Schedule and Annex templates. This function is often performed with the composition of policy manuals, where required.

When new ISDA definitions booklets are published, clients often want to prepare new confirmation templates. DDL can help clients with this process either directly or through expert, trusted associates who specialise in certain types of confirmations.