October 11, 2022

ISDA and SIFMA submitted an amicus brief in support of the bankruptcy creditor counterparties in the U.S. Bankruptcy Court in the Southern District of Texas.  The amicus brief argues that, under the terms of the 1992 Master ISDA, non-defaulting swap counterparties are neither required to (1) provide Reference Market-makers with a copy of the Credit Support Annex between them and the defaulting counterparty to complete the Market Quotation process, nor (2) take the defaulting counterparty’s creditworthiness into consideration when assessing the amount of “Loss.”