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Answer: OTC derivative trade
An **ISDA agreement** (typically the ISDA Master Agreement) is used to document **over-the-counter (OTC) derivatives**. Exchange-traded derivatives are generally governed by exchange and clearinghouse rules rather than a bilateral ISDA contract.
Author: Manit Arora
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Question 135.1 Which transaction is likely to be governed by an ISDA agreement?
A
OTC derivative trade
B
Exchange-traded derivative instrument
C
Both OTC and exchange-traded instrument
D
Neither OTC nor exchange-traded instrument
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