Derivatives are used by banks and corporates for hedging and, in some cases, investment purposes. We advise on the documentation of derivatives transactions (often based on ISDA Master Agreements) and on the local-law enforceability of close-out netting, collateral arrangements and early-termination provisions. Regulatory and capacity issues under Cambodian law are assessed for each counterparty type. Clear documentation reduces uncertainty in the event of default or insolvency.