PUBLIC POLICY ADVOCACY OF THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION (ISDA)

Since its founding in 1985, the International Swaps and Derivatives Association  with offices in New York, London, Hong Kong, Tokyo, Washington DC, Brussels and Singapore has worked to make over-the-counter (OTC) derivatives markets safe and efficient

ISDA’s pioneering work in developing the ISDA Master Agreement and a wide range of related documentation materials, and in ensuring the enforceability of their netting and collateral provisions, has helped to significantly reduce credit and legal risk. The Association has been a leader in promoting sound risk management practices and processes, and engages constructively with policymakers and legislators around the world to advance the understanding and treatment of derivatives as a risk management tool.

Today, ISDA has over 840 member institutions from 60 countries. These members include a broad range of OTC derivatives market participants including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure including exchanges, clearinghouses and repositories, as well as law firms, accounting firms and other service providers.

ISDA’s work in three key areas – reducing counterparty credit risk, increasing transparency, and improving the industry’s operational infrastructure – show the strong commitment of the Association toward its primary goals; to build robust, stable financial markets and a strong financial regulatory framework The mission of ISDA is to foster safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products.

ISDA achieves its mission by representing all market participants globally, promoting high standards of commercial conduct and leading industry action on derivative issues. This includes:

• Providing standardized documentation globally to ensure legal certainty and maximum risk reduction through netting and collateralization;
• Promoting infrastructure that supports an orderly and reliable marketplace as well as transparency to regulators;
• Enhancing counterparty and market risk practices and advancing the effective use of central clearing facilities and trade repositories;
• Representing the derivatives industry through public policy, ISDA governance, ISDA services, education and communication.

ISDA concentrates its work on the following regions: Asia-Pacific, Canada, CEE, Middle East Africa, Europe, Japan, Latin America and the United States