Disclosures and regulations

Indra Rajaratnam

30.1 INTRODUCTION

We are on the final leg of the expedition, before moving on to the “Exit Checkpoint”, having taken a trip through the structural features of the CDS, and having explored some of the material risks associated with the product. Although certain deemed representations and agreements, waivers and disclaimers have been discussed in Chapter 2 (on Parties and key players), Chapter 18 (on Publicly available information and eligible information) and Chapter 24 (on Physical settlement), this chapter features some of the additional representations and agreements that the parties to a transaction are required to make, in accordance with the provisions of the 2014 ISDA Credit Derivatives Definitions (henceforth the “2014 Definitions”; see International Swaps and Derivatives Association Inc. 2014b), when entering into a transaction. An understanding of these provisions is relevant in the context of any discretionary disclosures intended to be provided to a counterparty in the context of a structured transaction. Mandatory disclosure obligations required under the laws and regulations of any specific jurisdiction are beyond the scope of this discussion. In the concluding