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ISDA Master Agreement

Derivative transactions are conducted worldwide with financial organizations and corporates involved from all around the world.

What is a ISDA Master Agreement?

Derivative transactions are conducted worldwide with financial organizations and corporates involved from all around the world. In order to standardize the transactions, International Swaps and Derivatives Association (ISDA) Master Agreement is used. ISDA is an over-the-counter (OTC) agreement to reduce legal uncertainty and mitigate credit risk. The Master Agreement is signed which is then used for multiple contracts

Why is ISDA Master Agreement important?

As the legal requirements vary from country to country and jurisdictions to jurisdictions, ISDA contracts assist organizations in developing standardized contracts which are acceptable and applicable to all counterparties from different locations.

Owais Siddiqui
1 min read
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