The most widely accepted standard form of documentation in the financial markets for derivative transactions. The ISDA master agreement can be used for a broad range of derivative transactions.
For further information, see the ISDA website.
USA
ISDA Master Agreement, Also known as an ISDA, ISDA Master or Master Agreement.
The standardized, pre-printed form agreement published by the International Swaps and Derivatives Association, Inc. (ISDA), which is used to document derivatives trades. The parties add to or modify the terms of the ISDA Master through the use of a Schedule to ISDA Master Agreement.
The ISDA Master, along with the Schedule to the ISDA Master Agreement, if any, are umbrella documents that parties typically use to govern their trading relationship, often covering many transactions (each of which is evidenced by a confirmation) of different types. Two such ISDA Masters are available for use: the 1992 ISDA Master and the 2002 ISDA Master. The primary difference between the two is the method used for settlement of trades upon the occurrence of an event of default or termination event: The 2002 ISDA Master uses the Close-out Amount method while the 1992 ISDA Master uses the Market Quotation/Loss method. Both ISDA Masters may be found on the ISDA website and can be downloaded for a fee.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.