International Swaps Derivatives Association

International Swaps & Derivatives Association is a trade association, headquartered in New York, that represents participants in the privately-negotiated derivative securities industry.

Many derivatives, such as stock options or cattle futures, are sold through organized exchanges. But such exchanges require standardized contracts, whereas many parties want to tailor their derivative contracts to highly specific, even idiosyncratic, goals and circumstances. The "privately-negotiated" contracts, also known as "over the counter," are generally prepared with the help of the wide range of documents and materials prepared by ISDA, especially its "Master Agreement," which has become the industry standard.

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