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Credit Default Swap Agreement Template for Singapore

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Key Requirements PROMPT example:

Credit Default Swap Agreement

"Need a Credit Default Swap Agreement under Singapore law for a portfolio of Asian corporate bonds, with quarterly premium payments and physical settlement options, to be effective from March 2025."

What is a Credit Default Swap Agreement?

The Credit Default Swap Agreement serves as a crucial risk management tool in Singapore's financial markets. This document is typically used when parties seek to transfer credit risk exposure without transferring the underlying asset. The agreement incorporates Singapore's regulatory requirements, including MAS guidelines and reporting obligations, while following international ISDA standards. It specifies credit events triggering protection, premium payment structures, settlement terms, and compliance with Singapore's derivatives trading framework. This contract type is particularly relevant given Singapore's position as a major financial hub, with specific provisions addressing local legal and regulatory requirements.

What sections should be included in a Credit Default Swap Agreement?

1. Parties: Identification of the protection buyer and protection seller

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used tHRoughout the agreement including Credit Events

4. Reference Entity: Entity whose credit risk is being transferred

5. Credit Events: Specific events triggering payment obligations

6. Settlement Terms: Method and process of settlement following a Credit Event

7. Premium Payments: Payment terms, frequency, and calculation methods

What sections are optional to include in a Credit Default Swap Agreement?

1. Multiple Reference Entities: Additional provisions for when the CDS covers multiple entities, typically used for portfolio or basket CDS agreements

2. Restructuring Provisions: Specific terms for restructuring events when parties want to include restructuring as a Credit Event

3. Additional Termination Events: Specific circumstances allowing early termination beyond standard termination events

What schedules should be included in a Credit Default Swap Agreement?

1. Schedule 1: Reference Obligation Details: Specific details of the underlying obligation(s)

2. Schedule 2: Notice Requirements: Forms and procedures for various notices under the agreement

3. Appendix A: Credit Event Definitions: Detailed definitions of included Credit Events

4. Appendix B: Calculation Agent Provisions: Terms governing the role and responsibilities of the Calculation Agent

5. Appendix C: Form of Credit Event Notice: Standard form for Credit Event notifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities, derivatives, and financial markets in Singapore. Provides regulatory framework for CDS and other derivatives trading.

Financial Advisers Act (FAA): Regulates financial advisory services and ensures proper conduct in providing advice about derivative products like CDS.

Companies Act: Fundamental corporate law that governs company operations and corporate transactions in Singapore, relevant for counterparty considerations.

MAS Notice SFA 04-N15: Specific regulatory notice concerning OTC derivatives reporting requirements in Singapore.

MAS Guidelines on Risk Management Practices: Regulatory guidelines specifying risk management requirements for financial institutions dealing with derivatives.

ISDA Master Agreement: International standard agreement for derivative transactions, adapted for Singapore law compliance.

Basel III Requirements: International banking standards implemented in Singapore, affecting capital requirements for derivative transactions.

Insolvency, Restructuring and Dissolution Act: Governs insolvency proceedings and creditor rights, crucial for default scenarios in CDS agreements.

Personal Data Protection Act (PDPA): Regulates the collection, use, and disclosure of personal data in Singapore, relevant for client information handling.

SGX Rules and Regulations: Exchange-specific rules that may affect CDS trading and clearing obligations.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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