Smart Derivatives Contracts: the ISDA Master Agreement and the\n automation of payments and deliveries

Abstract

High-value derivatives contracts require substantial legal protection and\noften utilise standardised legal documentation provided by the International\nSwaps and Derivatives Association (ISDA). Smart Derivatives Contracts aim to\nautomate many aspects of high-value contracts, including automation of the\nprovisions of the ISDA legal documentation. Here we investigate how the ISDA\nMaster Agreement may affect the automation of payments and deliveries: we\nprovide a framework for understanding how high-value derivatives contracts are\nstructured at different levels, in terms of both the legal documentation and\nthe workflow; we explain issues relating to how the smart contract code\nprocesses payments-related and deliveries-related events; and we discuss the\nextent to which these are amenable to automation.\n