Digital Assets Trading

The digital asset derivatives market presents unique legal and documentation challenges, including determining whether assets are classified as securities or commodities under the evolving regulatory framework, navigating disruption events unique to cryptocurrencies such as blockchain forks and price source discontinuities, establishing robust valuation waterfalls given the 24/7 nature of digital asset trading and absence of traditional pricing screens, addressing close-out netting and collateral enforceability issues highlighted by recent crypto exchange bankruptcies, and adapting ISDA documentation frameworks for digital asset forwards and options. In addition to negotiating standard form and bespoke derivatives documentation on digital assets, we negotiate purchase agreement, custody agreement, prime brokerage agreements and loan agreements.

• ISDA Digital Asset Derivatives Definitions