The ISDA/IIFM Tahawwut Master Agreement is a comprehensive framework agreement for Islamic derivatives transactions. The document provides the first standard contractual document for cross-border transactions in Shariah-compliant derivatives. Like the ISDA Master Agreement 2002 on which it is based, the ISDA/IIFM Tahawwut Master Agreement is a multi-product framework agreement. The document was drafted with the aim of documenting Islamic swepts of profit rates and commodity-based currencies. The ISDA Master Agreement, published by the International Swaps and Derivatives Association, is the most widely used master service agreement for OTC derivatives trading internationally. It is part of a documentary framework designed to enable comprehensive and flexible documentation of OTC derivatives. The framework consists of a framework contract, a timetable, confirmations, definition brochures and credit support documentation. The main benefits of an ISDA master agreement are improved transparency and liquidity. As the agreement is standardized, all parties can review the ISDA Framework Agreement to find out how it works. This improves transparency, as it reduces the possibility of obscure provisions and exchange clauses. Standardization through an ISDA framework agreement also increases liquidity, as the agreement makes it easier for the parties to carry out repeated transactions.

Clarifying the terms of such an agreement saves time and attorneys` fees for all parties involved. The main credit support documents subject to UK law are the 1995 Credit Support Annex, the 1995 Credit Support Deed and the 2016 Credit Support Annex for Variation Margin. Support credits ancillary to English law provide guarantees for the transfer of ownership, while English Credit Support Deed provides for the granting of a guarantee right on the transferred guarantees. The Credit Support Annex 2016 for Variation Margin was specifically introduced to enable parties to meet their Margin Variation exchange obligations in compliance with margin rules worldwide, including EMIR in Europe and Dodd-Frank in the United States of America. The annexes to credit assistance under English law are confirmations and the transactions they constitute are transactions under the framework agreement and therefore form part of the special contract with the framework agreement. On the other hand, the English Credit Support Deed is a separate agreement between the parties. Most multinational banks have ENTERed into ISDA framework contracts. These agreements generally apply to all branches operating in the context of currency, interest rate or option trading.

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