This page will be updated on a regular basis as relevant information becomes available and will serve as a repository for information from ISDA relating to the initiative to update the 1998 FX and Currency Option Definitions (the “FX Definitions”).

Members who would like to stay updated on or be involved in this initiative can join the ISDA FX Definitions Update Group.

Throughout the project, ISDA will be engaging with market participants and key infrastructure providers. Should any member and non-member have questions or comments, they can email ISDA Market Infrastructure and Technology at MarketInfrastructureandTechnology@isda.org

Background

1. ISDA FX Definitions Market Participant Survey
   In 2023, ISDA launched a survey to better understand if and how the FX Definitions should be updated. More information is available at the following page.
2. Strategy for Updating the FX Definitions
   In 2023, ISDA developed a strategy for updating the FX Definitions, based on the responses to the survey mentioned above. This strategy is available at the following page.

Project Timeline

See the expected timeline of the topics addressed in the FX Definitions Update Group. Note that this timeline is subject to change.

Work to update the FX Definitions is expected from 2024 until 2027.

Drafting Phase – The drafting phase is expected to run from 2024 until the end of 2025.

Implementation Phase – The industry implementation phase is set to run from late 2025 until November 2027. Upon implementation of the new FX Definitions, it is expected that market participants will reference them in new FX transactions (including rolls of existing transactions). ISDA will publish more detailed implementation timelines and targets as this project progresses so that market participants and infrastructure providers can plan budget and allocate resources as necessary to meet the November 2027 effective date.

Workstreams

During 2025, ISDA will be addressing the following topics.

1. Main Book Compilation
   Completion of work to consolidate and rationalize existing components of the FX Definitions, such as the latest FX products Supplements, Additional Provisions and EMTA & EMTA/SFEMC Template Terms. Other than as specifically contemplated, the provisions of the Main Book will remain substantively the same but will be re-drafted to support digitization and digital consumption, as well as to reconcile defined terms and concepts (e.g., Business Day, Business Day Convention, Spot Rate) for which the same or similar terms are defined differently in the existing FX Definitions and related documentation.
2. Deliverable Disruption Events/Fallbacks
   1. Work may include amendments to existing Disruption Events/Disruption Fallbacks, addition of Disruption Events/Disruption Fallbacks and/or development of different consequences for different Disruption Events.
   2. Finalization of the updated deliverable CNY provisions and incorporation of the RUB deliverable currency disruption events.
3. Non-Deliverable Disruption Events/Fallbacks
   Rationalization of the provisions substantially developed in 2024 for inclusion in the Main Book.
4. Streamline EMTA & EMTA/SFEMC Template Terms
   Rationalization of terms into the Main Book as part of the Main Book compilation. Consolidation of terms to be achieved through the proposed Emerging Markets Matrix.
5. Calculation Agent Role and Standard
   1. Identifying Calculation Agent roles in the current FX documentation framework and addressing potential gaps where calculations/determinations are not expressly assigned to a party.
   2. Rationalizing Calculation Agent standards from different FX publications, including from the EMTA & EMTA/SFEMC Template Terms.
6. Unexpected Holidays
   ISDA will discuss with members a proposal to address the economic discrepancies that arise when a holiday is scheduled after the trade date for an FX transaction (e.g., a day of mourning) but the forward price does not change to address the addition of an extra non-business day.  Resulting provisions (if any) to be prepared for inclusion in the FX Definitions.
7. FX Novations Provisions
   Updated FX Novations provisions, that will be conceptually developed by the FX Novations Subgroup, to be produced and reviewed by the wider group for inclusion in the FX Definitions.
8. Technical Revisions
   1. Work to understand if and how Rounding provisions should be updated.
   2. Proposal to create an optional Automatic Exercise mechanism in addition to the one in the 1998 FX Definitions.
   3. Introduction of a new cash-settlement concept, to be distinguished from non-deliverable settlement due to their application of different Disruption Events and Fallbacks.
9. Production of updated confirmation templates, including those from the latest FX products Supplements, and index of terms.

Working Group Calls