Mutual Termination Clause

This Issue in United States

Mutual Termination Clause

Concept of Mutual Termination Clause in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A bilaterally agreed clause that allows both counterparties to a transaction to terminate the trade early under certain defined circumstances (for example a credit rating down grade of one counterparty below a certain threshold).

Resources

See Also

• Derivatives Contract