The ISDA master agreement is a contract template created by the International Swaps and Derivatives Association (ISDA) to enable OTC derivatives to be traded easily within a framework agreed to by both parties. Once the agreement is signed the parties are able to complete all future transactions under its terms.
The same master agreement is always used, but the parties may use the attached schedule to introduce elections and modify standard provisions to fit their needs. The document also includes confirmations, which specify the terms of each transaction and list definitions of standard terms for documenting particular types of transactions.
In addition to the schedule and confirmations, an ISDA master agreement often includes a credit support annex which governs the terms under which collateral is posted or transferred between the swap counterparties. This helps to minimize the credit risk associated with swap transactions.
Shipkevich ISDA Master Agreement services include: