ISDA Papers on DLT and Smart Contracts
ISDA has published a number of papers exploring issues of legal and regulatory uncertainty as market participants seek to apply new technologies, such as smart contracts and DLT, to derivatives trading. This page contains links to each of these papers.
This page will be updated as new papers and materials are published.
Contents:
1. Legal Guidelines for Smart Derivatives Contracts
2. Whitepapers & Academic Papers
3. Letters & Consultation Responses
If you have any questions or feedback on any of these papers, please contact ISDALegal@ISDA.org
(most recent update: 22nd April, 2021)
A series of legal guidelines for smart derivatives contracts, intended to explain the core principles of ISDA documentation and to raise awareness of important legal terms that should be maintained when a technology solution is applied to derivatives trading.
| Published | Subject | Link |
| January 2019 | Introduction | Link |
| February 2019 | ISDA Master Agreement | Link |
| September 2019 | Collateral Documentation | Link |
| February 2020 | Interest Rate Derivatives | Link |
| February 2020 | Equity Derivatives | Link |
| November 2020 | Credit Derivatives | Link |
| November 2020 | Foreign Exchange (FX) | Link |
| Published | Title | Overview |
| 2017 | Smart Contracts and Distributed Ledger – A Legal Perspective | Co-authored with Linklaters, this whitepaper sets out what smart contracts and DLT are, how they might be used in a derivatives context and what the relevant legal considerations. |
| 2018 | Smart Derivatives Contracts – From Concept to Construction | Co-authored with King & Wood Mallesons, this whitepaper proposes a practical framework for constructing smart derivatives contracts. |
| 2019 | Smart Derivatives Contracts: The ISDA Master Agreement and the Automation of Payments and Deliveries | An academic paper exploring which provides a framework for understanding how derivatives contracts are structured at different levels, in terms of both the legal documentation and the work-flow and discusses how smart contract code might processes and automate payments-related and deliveries-related events. |
| 2020 | Private International Law Aspects of Smart Derivatives Contracts utilizing Distributed Ledger Technology | Co-authored with Clifford Chance, R3 and Singapore Academy of Law, this whitepaper discusses the private international law, or conflict-of-law, aspects of derivatives contracts governed by the laws of Singapore and England and Wales involving distributed ledger technology.
Subsequent papers covering French, Japanese, Irish and New York law be be found here. |
| Date | Event | Overview |
| 29 July, 2020 | Joint Association Letter on a Digital Future for Financial Markets | A letter from ISDA and several other trade associations to the Financial Stability Board, the International Organization of Securities Commissions and the Basel Committee on Banking Supervision asserting our joint commitment to defining and promoting the development of a digital future for financial markets.
Access the letter here. |
| 19 March, 2021 | ISDA Response to HMT Cryptoasset and Stablecoin Consultation | ISDA’s response to HM Treasury’s consultation and call for evidence on the UK’s regulatory approach to cryptoassets and stablecoins. ISDA’s response highlights opportunities for the deployment of new technology such as distributed ledger technology (DLT) and smart contracts in the derivatives market.
Access the response here. |
Latest
Marking a Milestone - IQ January 2025
It was a different time and a very different market, but 1985 remains a seminal year in the history of over-the-counter (OTC) derivatives – the year that ISDA was established and the very first industry standard document was published. While...
Response to FCA on SI Regime
On January 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) responded to questions from the UK Financial Conduct Authority (FCA) on the future of the systematic internalizer (SI) regime. In the response,...
Response to CSA on Clearing Obligation
On December 19, ISDA submitted a response to the Canadian Securities Administrators (CSA) consultation on proposed amendments to the clearing obligation in Canada. The CSA invited comments on the proposed amendments and on the specific question set out in Annex B...
Derivatives Regulations and Usage in Japan
Japan’s regulatory landscape has generally been supportive of derivatives use by various segments of the buy side. While there are some guidelines on the purposes for which derivatives can be used by certain entities, which are not unique to Japan,...