ISDA Commodity Derivatives Definitions, Exhibits, Annexes and Confirmations (Including Bullion)

2005 ISDA Commodity Definitions and User's Guide to the 2005 ISDA Commodity Definitions

The 2005 ISDA Commodity Definitions, the Exhibits to the 2005 ISDA Commodity Definitions which include standard Confirmation templates, and the Annex to the 2005 ISDA Commodity Definitions, are intended for use with the ISDA Master Agreements, or other agreements, and are designed to be incorporated into Confirmations of individual commodity transactions governed by those agreements. The Commodity Definitions significantly update and expand upon the 1993 ISDA Commodity Derivatives Definitions and the 2000 Supplement to the 1993 Definitions, as well as incorporate the 1997 ISDA Bullion Definitions. The Commodity Definitions are for use by participants in privately negotiated commodity transactions including cash-settled commodity swaps, basis swaps, options, caps, collars, floors, swaptions and commodity index transactions, as well as certain physically-settled commodity transactions. A sample form of letter agreement constituting a Confirmation, together with specific provisions for use in Confirmations that document different types of commodity transactions, are included in the Exhibits. The Annex includes revised Commodity Reference Prices (in Sub-Annex A) together with additional definitions, other provisions and forms of Confirmation relevant to bullion transactions, weather index derivative transactions, European physical gas transactions, North American physical gas and power transactions, GTMA transactions, EU emissions allowance transactions and freight transactions (Sub-Annexes B-I).

The User's Guide to the 2005 ISDA Commodity Definitions is designed to assist in the understanding and use of the 2005 ISDA Commodity Definitions. This publication provides an overview of the structure of and highlights key features in the 2005 ISDA Commodity Definitions that mark changes from the 1993 ISDA Commodity Definitions, the 2000 Supplement to the 1993 Definitions and the 1997 ISDA Bullion Definitions. The User’s Guide also contains a discussion of the Commodity Reference Price Framework (with examples) and provides a schematic presentation of the operation of the Disruption Fallback waterfall.

Supplement to Sub-Annex A to the 2005 ISDA Commodity Definitions

ISDA Global Physical Coal Annex

(“ISDA Coal Annex”) for the purchase or sale of physical coal (sourced at origins in the US or outside the US) on a spot or forward basis, or for trading in options to purchase or sell physical coal.

Important Note for “International Coal”: For coal sourced at origins outside the United States (“International Coal”), the Standard Coal Trading Agreement published by globalCOAL® (“SCoTA®”) is incorporated by reference into Appendex 2 of the ISDA Coal Annex. globalCOAL Limited is the sole proprietor of any and all the intellectual property rights in, to, arising from and associated with each and all versions of the SCoTA. Express consent is required from globalCOAL Limited in order to make use of SCoTA in any manner, including the SCoTA terms incorporated by reference through Appendix 2 to the ISDA Coal Annex. Accordingly, if a party wishes to enter into transactions governed by Appendix 2 of the ISDA Coal Annex, before doing so it must accept and therefore enter into the globalCOAL Limited licensing scheme, which is available at http://www.globalcoal.com/

1993 ISDA Commodity Derivatives Definitions

The 1993 ISDA Commodity Derivatives Definitions are designed to facilitate the documentation of commodity transactions under the 1992 Master Agreements. Sample forms of confirmation are included.

(Please refer to 2005 ISDA Commodity Definitions)

US Emissions Allowance Transaction Documents

(published December 21, 2006)

The U.S. Emissions Allowance Transaction Annex to the ISDA Master Agreement together with a confirmation template are intended to apply to transactions for the purchase, sale or exchange of an emissions product on a spot ("Immediately-Delivered Emissions Transaction") or forward basis, or as option to purchase, sell or exchange of an emissions product. The new publication is structured as an annex to the ISDA Master Agreement Schedule. Emissions products covered by the Annex include Carbon Financial Instruments (CFIs) traded on the Chicago Climate Exchange; emissions of nitrogen oxide; emissions of sulfur dioxide and any emissions allowance or credit created under a U.S. state cap-and-trade program. The list of emissions products covered by the Annex is designed to be updated as new emissions products, such as renewable energy credits, gain liquidity in the market. 

1997 ISDA Bullion Definitions

The 1997 ISDA Bullion Definitions are jointly published by ISDA and LBMA and are intended for use in confirmations of individual transactions governed by agreements such as the 1992 ISDA Master Agreements to document cash-settled and physically-settled (on an unallocated basis) bullion spot and forward trades and options and cash-settled bullion swaps, caps, collars, floors and swaptions. Bullion, as used in these Definitions, means each of gold, silver, platinum and palladium.

(Parties may also refer to Sub-Annex B of the 2005 ISDA Commodity Definitions)

1997 ISDA Short Form Bullion Definitions

The 1997 ISDA Short Form Bullion Definitions are intended for use in confirmations of individual transactions governed by agreements such as the 1992 ISDA Master Agreements. These Definitions were extracted from the 1997 ISDA Bullion Definitions to meet the needs of certain market participants who desired a short form set of Definitions covering only physically settled (on an unallocated basis) bullion spot and forward trades and options. Bullion, as used in these Definitions, means each of gold, silver, platinum and palladium.

(Parties may also refer to Sub-Annex B of the 2005 ISDA Commodity Definitions)