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The ISDA Master Agreement is a standard document published by the International Swaps and Derivatives Association, outlining the terms of over-the-counter derivatives transactions between two parties. It allows future transactions between the parties without renegotiation. Parties can modify the agreement using an ISDA schedule. There are no intermediaries in these transactions, making traders cautious due to the large values involved. The agreement, created in 1985, includes clearly defined contract terms.
