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Arbitration in Swaps and Derivatives Transactions: New Guide Released

The International Swaps and Derivatives Association (ISDA), a membership organization aimed at fostering safe and efficient derivatives markets to facilitate effective risk management, published its 2013 Arbitration Guide on September 9th.  

According to the ISDA Press Release, the Guide was the result of an extensive consultation process with a diverse group of market participants, in response to a recent – and growing - trend in derivatives to make use of arbitration rather than litigation.

The Arbitration Guide provides a useful overview of arbitration and its key features, as well as the first comprehensive set of ISDA model arbitration clauses for use with the 2002 ISDA Master Agreement and 1992 ISDA Master Agreement (Multicurrency-Cross Border). The model arbitration clauses cover a variety of arbitration rules, institutions, and potential seats, including the ICC Rules (London, New York or Paris seat), LCIA Rules (London seat), AAA-ICDR Rules (New York seat), HKIAC Rules (Hong Kong seat), SIAC Rules (Singapore seat), Swiss Chambers’ Arbitration Institution Rules (Zurich or Geneva seat), and PRIME Finance Rules (London, New York or The Hague seat).

ISDA has over 800 member institutions from 60 countries, including a broad range of derivatives market participants including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure including exchanges, clearinghouses and repositories, as well as law firms, accounting firms and other service providers.  

The ISDA Press Release and 2013 Arbitration Guide are available at: