ISDA Master Agreement And Currency Forward In Paraguay

The ISDA Master Agreement is a broad contract which sets the general rules for parties who wish to trade with over-the-counter (OTC) derivatives and may be used for currency swaps or forwards, stock swaps, and even interest rates swaps, and as many other derivatives which may be traded OTC.

Although currency forwards are covered within the ISDA Master Agreement, these types of transactions are regulated in Paraguay by the Regulation of Operations Future Purchase and Sale of Foreign Currency (Currency Forwards). One condition which deserves special consideration is that the controversies between parties in a transaction of this type must necessarily be submitted to Paraguayan jurisdiction if the transaction involves a party domiciled in Paraguay.

However, the ISDA Master Agreement, as drafted and published, foresees the possibility to...