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The ISDA Master Agreement outlines the terms of over-the-counter derivatives transactions between two parties and serves as a standard agreement published by the International Swaps and Derivatives Association. It applies to all future transactions, eliminating the need for renegotiation. However, parties can modify the terms using an ISDA schedule. Transactions are conducted directly between the two parties, with no exchanges or intermediaries. Given the large values in the OTC market, the agreement, created in 1985, provides clarity and helps alleviate concerns for traders by offering well-defined contract terms.