Commissioned by the International Swaps and Derivatives Association (ISDA) Sorainen prepared a country opinion for Lithuania on netting provisions under ISDA Master Agreements and other related ISDA standard documents. The ISDA programme dedicated to publishing new and updated legal opinions currently covers 64 jurisdictions. The ISDA netting opinion for Lithuania was published on 10 May 2018.
The ISDA is among the world’s largest global financial trading associations, representing participants in the privately-negotiated derivatives industry. Its members include most of the world’s major institutions dealing in privately-negotiated derivatives, as well as many businesses and government entities. Since its inception in 1985, the ISDA has pioneered efforts to identify and reduce sources of risk in the derivatives and risk-management business. At the beginning of 2018 Sorainen became the first law firm in the Baltics to join the association.
Sorainen had already collaborated with the ISDA while preparing the Lithuanian Law on Financial Collateral Arrangements. This not only implements the Directive on Financial Collateral Arrangements but also, following the ISDA Model Netting Act, decreases systemic risk and creates more certainty in the derivatives trade by providing provisions for close-out netting under OTC derivative transactions.
The country opinion for Lithuania was prepared by partners Augustas Klezys and Tomas Kontautas and senior associate Agnë Sovaitë.