Confirmations and definitions

This overview is a guide to the Banking & Finance content within the Confirmations and definitions subtopic, with links to appropriate materials.

The confirmation is the document in a derivative transaction which sets out the commercial terms of a particular transaction.

Confirmations typically incorporate certain defined terms by reference to booklets published by International Swaps and Derivatives Association, Inc. (ISDA) which are known as the ISDA definitions. Various ISDA definitions booklets have been published and are to be selected for incorporation into a confirmation depending on the type of derivative transaction involved.

ISDA documentation framework—how confirmations and the ISDA definitions fit in

The vast majority of derivative transactions are documented by the standard documentation developed and published by ISDA.

The ISDA documentation framework involves layers of documentation, known as the ISDA documentation architecture:

•
the master agreement is a pre-printed umbrella document which includes the boilerplate provisions for every trade (unless varied by the schedule to the master agreement)
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the schedule to the master agreement amends and supplements the terms of the master agreement as required by the parties
•
the credit support documents (if applicable)

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