How Does the ISDA Master Agreement Facilitate Netting?

The ISDA (International Swaps and Derivatives Association) Master Agreement provides a single, standardized legal framework under which all bilateral derivatives transactions between two parties are conducted. This single agreement is the foundation for close-out netting, ensuring that all trades are treated as one single contract for settlement purposes upon default.

What Is the Significance of an ISDA Master Agreement in Traditional Prime Brokerage, and Does an Equivalent Exist in Crypto?
How Does the Use of a ‘Master Netting Agreement’ Reduce Counterparty Exposure for a Prime Broker?
How Does the Concept of “Netting Set” Apply to a Portfolio of Derivatives?
How Can a DAO Use a ‘Master Agreement’ to Manage OTC Trades?
What Are the Primary Differences between an ISDA Master Agreement and a Traditional Futures Account Agreement?
How Do ISDA Master Agreements Mitigate Counterparty Risk in OTC Derivatives, Even with Non-Custodial Trading?
Why Is ‘Close-out Netting’ a Critical Feature of the ISDA Agreement?
How Does the Legal Framework Support Bilateral DVP Arrangements?

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