Custody Account Control Agreement

Like much of the ISDA derivatives literature, the CBA is a framework agreement that allows the parties to set out in an annex the terms they have agreed to bilaterally. However, unlike these other documents, the main part of the ACA does not contain many provisions relating to its main purpose, namely the circumstances in which the guarantor or the lessee of security may issue instructions to the depositary for the release of security rights. The fact that these provisions are included in the Annex and, despite months of in-depth review at sectoral level, are structured as proposed elections and not as a standard approach reflects the inherent difficulty in reconciling the interests of the guarantor, the collateral taker and the depositary. Since 1985, ISDA has worked to make global OTC derivatives markets safer and more efficient.

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