ISDA Pagrindinės sutarties sąlygos LR imperatyvių teisės normų kontekste ; The isda master agreement provisions in the context of imperative legal norms of the republic of lithuania

Abstract

Summary The ISDA Master Agreement Provisions in the Context of Imperative Legal Norms of the Republic of Lithuania ISDA master agreement is one of the most important agreements in modern financial markets. The first edition of this agreement was published in 1992, when the development of documentation of derivatives had begun. Following to this ISDA master agreement and the close-out netting provisions of this agreement had significant impact to the growth of the world's financial markets and lead to implementation of netting laws in many of the jurisdictions. However, first steps to introduce the close-out netting in Lithuanian law system had been done only after it became the member of European Union, when the Law of Collateral Agreements was adopted. The first part of the thesis deals with the issues, related to structure and evolution of ISDA master agreement and the significance of this document to the Lithuanian and world's financial markets. The second part of the thesis deals with the analysis of two most important mechanisms of the credit risk reduction: close-out netting and collateral agreements. Moreover, it comments the legal capacity of legal subjects to enter ISDA master agreement.