The ISDA Master Agreement is a broad contract which sets the general rules for parties who wish to trade with over-the-counter (OTC) derivatives and may be used for currency swaps or forwards, stock swaps, and even interest rates swaps, and as many other derivatives which may be traded OTC.

Although currency forwards are covered within the ISDA Master Agreement, these types of transactions are regulated in Paraguay by the Regulation of Operations Future Purchase and Sale of Foreign Currency (Currency Forwards). One condition which deserves special consideration is that the controversies between parties in a transaction of this type must necessarily be submitted to Paraguayan jurisdiction if the transaction involves a party domiciled in Paraguay.

However, the ISDA Master Agreement, as drafted and published, foresees the possibility to choose the applicable law, which may be either New York Law or United Kingdom Law, while the mentioned regulation does not refer to applicable law. This matter takes great relevance considering the significant differences of the common law vis-à-vis the Paraguayan legal system.

The attached file contains more information regarding the above. 

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ISDA MASTER AGREEMENT Y FORWARD DE DIVISAS EN PARAGUAY

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.