Versions of Isda Master Agreement

The International Swaps and Derivatives Association or ISDA is a trade organization formed in 1985 to promote and standardize the derivatives market. One of the most important documents produced by the ISDA is the ISDA Master Agreement, a standard document used globally to govern derivatives transactions.

Over the years, there have been several versions of the ISDA Master Agreement. These versions reflect changes in the derivatives market, regulatory requirements, and the evolution of the standardization process. In this article, we will discuss the various versions of the ISDA Master Agreement and their key features.

ISDA Master Agreement 1992

The ISDA Master Agreement 1992 was the first standardized agreement for the derivatives market. It was created to reduce the legal risks associated with derivatives transactions. The main features of the 1992 version include:

– A single agreement governing multiple transactions

– Netting provisions that allow for the calculation of a single net payment obligation

– Standard definitions for key terms used in the derivatives market

– Provisions relating to events of default, termination, and close-out netting

– Governing law and jurisdiction provisions

ISDA Master Agreement 2002

The ISDA Master Agreement 2002 was the first major update to the 1992 version. It incorporated changes in market practice, regulatory requirements, and technology. The key features of the 2002 version include:

– A more streamlined and user-friendly structure

– Updated definitions and cross-references to current market practice

– Provisions relating to credit support and collateral agreements

– More robust provisions governing the treatment of defaulting parties

ISDA Master Agreement 2006

The ISDA Master Agreement 2006 was a further update to the 2002 version. It was developed to address changes in the market since the 2002 version, including the development of credit derivatives and the growth of the emerging market derivatives market. The key features of the 2006 version include:

– Enhanced credit support provisions, including provisions for the transfer of collateral

– Additional provisions relating to netting, including provisions for cross-product netting

– Provisions relating to the use of electronic signatures and electronic transactions

– Provisions relating to the role of agents and service providers in the derivatives market

ISDA Master Agreement 2018

The most recent version of the ISDA Master Agreement is the 2018 version. It was developed in response to regulatory changes and market developments since the 2006 version. The key features of the 2018 version include:

– New provisions relating to regulatory compliance and reporting requirements

– Revised provisions relating to credit support and collateral agreements

– Provisions relating to the use of smart contracts and distributed ledger technology

– Enhanced provisions relating to the treatment of defaulting parties


The ISDA Master Agreement is a crucial document for derivatives transactions, providing a standardized framework and reducing legal risk. The various versions of the ISDA Master Agreement reflect the evolution of the derivatives market and regulatory requirements. It is important for market participants to understand the differences between the various versions to ensure they are using the most appropriate agreement for their transactions.