The International Swaps and Derivatives Association (ISDA) instructed Sorainen to provide a country legal opinion on the enforceability of close-out netting under Estonian law under ISDA Master Agreements and other related ISDA standard documents. The instructions followed the amendments to the Estonian close-out netting and financial collateral legislation that came into force at the end of 2025. The ISDA netting opinion for Estonia was published on 31 March 2026 and is available to ISDA members.
Legal certainty that strengthens trust in Estonia’s derivatives market
Derivatives are widely used by financial institutions, corporations, governments and other entities as critical tools for managing currency, interest rate, commodity and other financial risks. Their effective use contributes to financial stability and capital market development. Legally enforceable close-out netting is a central element of an effective, well-regulated derivatives and repo market. The possibility of relying on ISDA legal opinions creates more trust in the Estonian jurisdiction among foreign banks and other international financial institutions to enter into long-term agreements with local market participants.
About ISDA
ISDA, representing participants in the over-the-counter derivatives market, is one of the largest financial trade associations in the world. Its members include leading global institutions involved in privately negotiated derivatives transactions, as well as corporations and government entities.
Established in 1985, ISDA was one of the first organisations globally dedicated to defining and reducing risks associated with derivatives trading. In early 2018, Sorainen became the first law firm in the Baltic region to join the association.
Our services and client team
The legal opinion was prepared by partner Kätlin Krisak, counsel Jane Eespõld,senior associates Krista Ševerev and Liisa-Maria Puur, and assistant lawyer Oskar Joost.
