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The ISDA Master Agreement is a standardized document by the International Swaps and Derivatives Association for over-the-counter derivatives transactions between two parties. It eliminates the need to renegotiate terms for future transactions, but parties can modify it using an ISDA schedule. OTC transactions are direct between parties without intermediaries. Created in 1985, the Agreement provides clear definitions for contracts, helping traders navigate the high values and volumes of the OTC market.