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IsdaThe International Swaps and Derivatives Association (ISDA) is a voluntary consortium of major derivative players which created and maintains a standard derivative contract. The contract is divided into four sections: - Master Agreement - Contains the bulk of information regulating security transactions
- Schedule to the Master Agreement - Allows for individual parties/counterparties to edit/tweak/amend the Master Agreement
- Credit Support Annex (CSA) - Regulates credit support (collateral) for derivative transactions
- Paragraph 13 of CSA - Allows for individual parties/counterparties to edit/tweak/amend the CSA
ISDA contracts are crucial in creating industry standards for derivatives. It attempts to create a responsible derivative environment where no firm over exposes itself or others through derivatives. External links
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