Revised 2022 Amendment Agreement to Incorporate Additional Provisions for Use with a Deliverable Currency Disruption Event for RUB Foreign Exchange Transactions

(published August 12, 2022)

ISDA and EMTA have jointly published a revised amendment agreement on the incorporation of additional provisions for use with a deliverable currency disruption event for RUB foreign exchange transactions. The amendment introduces a fallback that would be triggered by the calculation agent where it has been determined that it would be impossible to deliver or convert amounts denominated in ruble on the date scheduled for settlement. The fallback, in this circumstance, is non-deliverable settlement of the transaction, with a net cash payment being payable in the relevant non-ruble currency determined by using the following alternative methods:

1. RUB MOEX (RUB05) as the settlement rate option that applies to covered transactions irrespective of the trade date; or
2. WM/Refinitiv MID (WMR03) as the settlement rate option that applies to covered transactions irrespective of the trade date; or
3. RUB MOEX (RUB05) as the settlement rate option that applies to covered transactions entered into prior to June 6, 2022 and WM/Refinitiv MID (WMR03) to covered transactions entered into from and including June 6, 2022.

The amendment agreement enables parties to bilaterally amend the terms of all or some of their outstanding deliverable ruble FX transactions with an option to include the same provisions in future such transactions too.

2022 Amendment Agreement to Incorporate Additional Provisions for Use with a Deliverable Currency Disruption Event for RUB Foreign Exchange Transactions

(published March 2, 2022, superseded as of August 12, 2022 by the Revised 2022 Amendment Agreement to Incorporate Additional Provisions for Use with a Deliverable Currency Disruption Event for RUB Foreign Exchange Transactions, above)

ISDA and EMTA have jointly published an amendment agreement on the incorporation of additional provisions for use with a deliverable currency disruption event for RUB foreign exchange transactions. The amendment introduces a fallback that would be triggered by the calculation agent where it has been determined that it would be impossible to deliver or convert amounts denominated in ruble on the date scheduled for settlement. The fallback, in this circumstance, is non-deliverable settlement of the transaction, with a net cash payment being payable in the relevant non-ruble currency. The amendment agreement enables parties to bilaterally amend the terms of all or some of their outstanding deliverable ruble FX transactions with an option to include the same provisions in future such transactions too.

Deliverable Currency Disruption Additional Provisions Letter Agreement for RUB FX transactions

(published April 21, 2009, superseded as of March 2, 2022 by the 2022 Amendment Agreement to Incorporate Additional Provisions for Use with a Deliverable Currency Disruption Event for RUB Foreign Exchange Transactions, above)

These two letter agreements (as described in more detail below) allow parties to incorporate the Additional Provisions for Use with a Deliverable Currency Disruption and ISDA Deliverable Currency Disruption Fallback Matrix (Additional Provisions) to foreign exchange transactions, including previously confirmed live trades, involving an amount payable in RUB.

The RUB Side Letter Agreement — FX Transactions provides the option for parties that have entered into written confirmations to either amend (A) all RUB Foreign Exchange transactions that have been entered into between the parties (irrespective of whether such RUB Foreign Exchange transaction is identified on the Schedule) or (B) the RUB Foreign Exchange transactions identified on the Schedule. For future trades, parties should include a new confirmation line item allowing them to apply or not apply the Additional Provisions.

The SWIFT Side Letter allows parties to amend foreign exchange transactions involving an amount payable in RUB confirmed on the SWIFT electronic platform. The SWIFT side letter will apply the Additional Provisions to previously confirmed and future RUB SWIFT trades.