The International Swaps and Derivatives Association (ISDA) has submitted a paper to the European Securities and Markets Authority (ESMA) and the European Commission on 5 September 2025, in support of its previous response to ESMA’s consultation package 4 (CP4) on derivatives transparency under the Markets in Financial Instruments Regulation. ISDA argues that classifying five-year single-name credit default swaps (CDS) by referencing global systemically important banks (G-SIBs) as liquid instruments contradicts methodologies used for other derivatives and bonds.

The International Swaps and Derivatives Association (ISDA) has published a compilation and comparison summary chart of equivalence determinations for global non-cleared margin requirements. The document is intended as an information resource only and does not contain legal advice.

The vast majority of over-the-counter (OTC) derivatives transactions are documented by standard documentation developed and published by the International Swaps and Derivatives Association, Inc. (ISDA). A confirmation sets out the commercial terms of a particular transaction. This Practice Note explains: • how confirmations fit into the ISDA documentation framework • the purpose of confirmations and what they contain • the confirmation documentation, and • the legal effect of confirmations Confirmations and the ISDA documentation framework ISDA documentation framework The ISDA documentation framework for derivatives involves layers of documentation. The key layers of documentation for a trade under the ISDA documentation framework are: • master agreement—the key forms of which are: ◦ 1992 ISDA Master Agreement (multicurrency, cross border form) (the 1992 Master Agreement), and ◦ 2002 ISDA Master Agreement (multicurrency, cross border form) (the 2002 Master Agreement) • schedule to the master agreement • credit support document (optional)—credit support takes the form of: ◦ a credit support annex which forms part of the schedule, or ◦ a credit support deed which is a stand alone document

What does this Practice Note cover? The vast majority of derivative transactions are documented using standard documentation developed and published by the International Swaps and Derivatives Association, Inc. (ISDA). The commercial terms of a particular trade are set out in a confirmation. For more information, see Practice Note: ISDA confirmations. A confirmation may incorporate certain defined terms by reference to booklets published by ISDA which are known as the ISDA definitions. Various ISDA definitions booklets have been published and are to be selected for incorporation into a confirmation depending on the type of derivative transaction involved. This Practice Note explains: • how the ISDA definitions fit into the ISDA documentation framework • the purpose of ISDA definitions • the key ISDA definitions, and • key points to consider when incorporating ISDA definitions into trade documentation ISDA definitions and the ISDA documentation framework ISDA documentation framework The ISDA documentation framework for derivatives involves layers of documentation. The key layers of documentation for a trade under the ISDA documentation framework are: • master agreement—the key forms of master agreement are: ◦ 1992

This checklist sets out the key ISDA documentary requirements which need to be considered during the course of a financing transaction. Term sheet stage • if acting for a borrower and specialist hedging advisors are instructed, get their input on the term sheet • if acting for a borrower, ensure that the overall pricing of the transaction is understood (across both the loan and the hedging). A borrower may choose a particular lender based on a low margin offered on the loan, but then find that the credit spread on the swap offered by the same lender means that the overall economics of the transaction are less attractive than those offered by a different lender • is the loan and hedging on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)? • does the lender require a zero floor in its loan? If acting for a borrower, ensure that the borrower understands the implications of a mismatch between this and the

Derivative transactions are typically documented by the standard documentation developed and published by the International Swaps and Derivatives Association, Inc. (ISDA). The key documentation which sets out the non-commercial terms that apply to each trade between two parties are: • the master agreement, and • the schedule to the master agreement The master agreement and schedule contain standard provisions which form a type of boilerplate between the two counterparties. The key versions of the master agreement are: • 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the 1992 Master Agreement) together with its schedule • 2002 ISDA Master Agreement (the 2002 Master Agreement) together with its schedule This Practice Note summarises the key differences between the 1992 Master Agreement and the 2002 Master Agreement. For information on the 1992 Master Agreement and 2002 Master Agreement and their related schedules in general, see Practice Note: ISDA master agreements and schedules—key provisions. Why there are two master agreements? In 1992, ISDA published two forms of master agreement: the 1992 Master Agreement (Multicurrency—Cross

The International Swaps and Derivatives Association (ISDA) has published a paper examining the extension of the Common Domain Model (CDM) to cover umbrella agreements and contract amendments, two areas previously absent from the CDM’s legal agreement model. Umbrella agreements document multiple bilateral relationships within a single legal document, commonly used where investment managers act for multiple funds or entities. Contract amendments cover bilateral restatements and market-wide ISDA protocols. The paper sets out how each area is now modelled in machine-readable form and makes the case for adoption by firms, vendors and infrastructure providers.

The International Swaps and Derivatives Association (ISDA) has announced an extension of its Digital Regulatory Reporting (DRR) solution to accommodate revised transaction reporting requirements under the Markets in Financial Instruments Directive (Directive 2014/65/EU) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) in the EU and the UK. In collaboration with The Depository Trust & Clearing Corporation (DTCC), which is set to integrate the DRR into its Global Trade Repository’s Approved Reporting Mechanism, the solution utilises the Common Domain Model to convert regulatory interpretations into machine-executable code, thereby facilitating a more efficient and accurate reporting process. Firms are expected to begin submitting transaction reports under the current UK framework from the first quarter of 2026, with the revised requirements anticipated to be implemented in 2027, subject to regulatory approvals.

The International Swaps and Derivatives Association (ISDA) has reported that it is extending its digital regulatory reporting (DRR) initiative to more jurisdictions to cover rule amendments being implemented under the UK European Market Infrastructure Regulation and by the Australian Securities and Investments Commission and the Monetary Authority of Singapore. Those rule changes are due to be implemented in the UK on 30 September 2024, and 21 October 2024 in Australia and Singapore. This initiative reduces the time and cost needed to implement changes in reporting requirements, thereby minimising the risk of regulatory penalties for misreported data.

The International Swaps and Derivatives Association (ISDA) has published a research paper on interest rate risk in the banking book (IRRBB) in emerging market and developing economies (EMDEs). The paper says banks in many EMDEs have faced increased sensitivity to interest rate movements during monetary tightening and macroeconomic volatility, and have often managed IRRBB mainly through balance sheet strategies such as shorter-term or floating-rate lending funded by time deposits. It says those approaches can provide only partial protection where long-term funding is limited, domestic capital markets are shallow, and derivatives markets are not deep or liquid, and it links these constraints to shorter-duration loan books and greater interest rate and refinancing risk being borne by borrowers.

The International Swaps and Derivatives Association (ISDA) has released their feedback to the European Securities and Markets Authority (ESMA), highlighting their stance on the content for over-the-counter derivatives post-trade transparency in the revised Markets in Financial Instruments Regulation (MIFIR), with emphasis on: the treatment of certain interest rate derivatives, index credit default swaps and securitised derivatives. ISDA predicts that ESMA’s report containing the reviewed regulatory technical standards will be released towards the latter part of 2024 or the start of 2025.

The International Swaps and Derivatives Association (ISDA) has issued a report, in collaboration with Boston Consulting Group (BCG), exploring how and why different types of firms use derivatives, the value these instruments bring to their business and the benefits to the broader economy. The report highlights that companies use derivatives for purposes such as risk transfer, liquidity management, and enhancing returns. This usage helps firms mitigate risk, stabilise financing terms, reduce costs, and improve financial performance, thereby enabling strategic investments and contributing to economic growth. The report also includes academic research showing that derivatives lead to lower cashflow volatility, reduced financing costs, higher returns, and increased investment capacity. Examples of derivative users include manufacturers, exporters, pension funds, energy producers, insurance companies, mortgage providers, banks, and asset managers.