What is ISDA?
The International Swaps and Derivatives Association, Inc. (“ISDA”) was formed in New York in 1985 and now has over 925 members. Its mission is to standardise market practice and documentation for OTC derivatives. In this it has been a resounding success because before ISDA there was no standard documentation in the market.
With complex Transactions that wide variety of documentation caused legal uncertainty and led ISDA members to compose a number of Master Agreements over the past 35 years notably the 1992 and 2002 ISDA Master Agreements. Both of these are used in the market.
ISDA has also published a number of Credit Support Annexes dealing with collateralising OTC derivatives transactions typically with high quality government bonds and cash.
They have also published comprehensive Definitions covering many product types including credit derivatives and equity derivatives. These Definitions are used in the composition of Confirmations which set out the terms for individual trades between counterparties.
DDL provides training, consultancy and negotiation services in ISDA documentation. Please visit the Services and Training sections of our website for further details.
ISDA® is a registered trademark. Please be advised that ISDA® documentation services provided by Derivatives Documentation Limited are not sponsored by or affiliated with ISDA.