Section 2(a)(iii): expired transactions not included in ISDA Early Termination calculations (High Court)

In Pioneer Freight Futures Company Ltd v Cosco Bulk Carrier Company Ltd [2011] EWHC 1692 (Comm), the High Court has considered the effect of section 2(a)(iii) and the Automatic Early Termination, Loss and Second Method provisions of a 1992 ISDA Master Agreement to determine which transactions are to be brought into the close-out calculations following Automatic Early Termination.

 NOTE: this case was overturned by the Court of Appeal on 3 April 2012, see Legal update, Section 2(a)(iii) ISDA Master Agreement: Court of Appeal judgment on four appeals.

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