International Swaps and Derivatives Association

The International Swaps and Derivatives Association (ISDA) is a global trade organization that brings together financial institutions involved in derivatives, such as swaps and options. Its main role is to develop standard agreements and guidelines to facilitate the trading, clearing, and risk management of these complex financial products. By creating clear legal frameworks, ISDA helps reduce uncertainty and counterparty risk, promoting stability and efficiency in the derivatives market worldwide. Essentially, ISDA acts as a form of industry governance, ensuring that participants operate under consistent rules to foster trust and transparency.