The Court of Appeal has ruled that negative interest does not accrue on collateral posted under the ISDA Credit Support Annex (1995). In proceedings brought by the Dutch State against Deutsche Bank, the State sought declarations including to the effect that on any day when the Interest Rate was negative, the Interest Amount for that day would be a negative number which fell to be deducted from the amount of collateral that had been posted by the Bank. The State’s claim failed at first instance. Dismissing the State’s appeal, the Court of Appeal held that on the true construction of the CSA, negative interest was not contemplated or intended. The Court’s judgment, a copy of which may be found here, is likely to be of interest to participants in the derivatives markets.