The International Swaps and Derivatives Association (ISDA)

The International Swaps and Derivatives Association is the global trade association representing participants in the privately negotiated derivatives industry, a business covering swaps and options across all asset classes (interest rate, currency, commodity and energy, credit and equity). ISDA was chartered in 1985, and today numbers over 600 member institutions from 46 countries on six continents. These members include most of the world's major institutions who deal in, as well as leading end-users of, privately negotiated derivatives. The membership includes associated service providers and consultants.

Since its inception, ISDA has pioneered efforts to identify and reduce the sources of risk in the derivatives and risk management business. Among its most notable accomplishments are: developing the ISDA Master Agreement; publishing a wide range of related documentation materials and instruments covering a variety of transaction types; producing legal opinions on the enforceability of netting and collateral arrangements (available only to ISDA members); securing recognition of the risk-reducing effects of netting in determining capital requirements; promoting sound risk management practices, and advancing the understanding and treatment of derivatives and risk management from public policy and regulatory capital perspectives.

The Association's primary purpose is to encourage the prudent and efficient development of the privately negotiated derivatives business by:

• Promoting practices conducive to the efficient conduct of the business, including the development and maintenance of derivatives documentation.

• Promoting the development of sound risk management practices.

• Fostering high standards of commercial conduct.

• Advancing international public understanding of the business.

• Educating members and others on legislative regulatory, legal, documentation, accounting, tax, operational, technological and other issues affecting them.

• Creating a forum for the analysis and discussion of, and representing the common interest of its members on, these issues and developments.