Legal Guidelines for Smart Derivatives Contracts: Equities

ISDA has published the fourth in a series of legal guidelines for smart derivatives contracts, intended to support technology developers, lawyers and other key stakeholders in the development of smart derivatives contracts in the equity derivatives market.

This paper:

  • Provides an overview of equity derivatives transactions and the different product types;
  • Explains how equity derivatives transactions are documented under both the 2002 and 2011 ISDA Equity Definitions; and
  • Explores how smart derivatives contracts might be constructed and delivered within the framework created by the 2011 ISDA Equity Definitions.

While the intention of this paper is not to specify or recommend any particular technological application or project, it does provide recommendations on steps that the industry should now take to further standardize and digitize equity derivatives documentation with a view to achieving greater automation of the equity derivatives market. This paper also provides information on how members can contribute to this work.

Click on the attached PDF to read the paper.

You can access all of ISDA’s papers on smart contracts here.

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