Negative interest determined not to be payable under an ISDA Credit Support Annex

On 25 July 2018, the English High Court handed down its judgment in The State of the Netherlands v Deutsche Bank AG [2018] EWHC 1935 (Comm). The case concerned the interpretation of a 1995 ISDA Credit Support Annex in a negative interest environment and raised a novel issue about whether the payment of negative interest on cash collateral is required. Given the Credit Support Annex’s widespread use as a standard market document, the case is highly significant for the derivatives market as a whole.

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