As a derivatives lawyer might tell you: you can’t argue with the fax. And while you’d be forgiven for thinking the days of dial-up technology were over, for some, the trusty fax machine is still a critical part of terminating a derivatives contract.
Under the Isda master agreement – the industry-standard contract from the International Swaps and Derivatives Association – closing out a contract requires parties to either physically hand over the notice at the address of their counterparty’s general counsel, deliver the notice by mail or courier, or send it via fax.
In the aftermath of Covid, however, as offices around the globe were devoid of staff, firms frantically searched the fine print in their documents for a viable alternative. The majority of Isda master agreements in use today were created in either 1992 or 2002, when fax machines were still in common use in a business setting. But that’s no longer the case.
“The…
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