ISDA

ISDA, the International Swaps and Derivatives Association, is an organization that creates standard agreements and guidelines for the over-the-counter (OTC) derivatives market, such as swaps and options. These agreements help financial institutions, corporations, and investors manage risks by clearly defining terms, conditions, and procedures for trading derivatives. Essentially, ISDA provides a common framework that facilitates smoother, safer transactions and reduces misunderstandings in complex financial deals. This standardization is crucial for maintaining transparency, stability, and trust in global financial markets.