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 modest in its scope and ambitions, the Code of Standard Wording, Assumptions and Provisions for Swaps (Code of SWAPS) put in place a new status quo, based on the recognition that collaboration was the best way to solve shared industry challenges. Forty years on, collaboration remains at the heart of everything ISDA has achieved.

This edition of IQ kicks off a year of publications and events to mark ISDA’s 40th anniversary by reflecting on some of the key documentation milestones, including the Code of SWAPS and the ISDA Master Agreement, as well as the development of protocols. It also recounts the story of how a group of bankers and lawyers set aside their competitive differences to discuss what could be done to alleviate the documentation bottlenecks in the nascent OTC derivatives market, and how that led to the formation of ISDA.

The anniversary year is an opportunity to share the perspectives of the many visionaries who have been responsible for ISDA’s successes over the years – from the senior executives and board members to the lawyers and regulators. This edition features a roundtable with seven of those luminaries and an interview with Ashley Alder, chair of the UK Financial Conduct Authority.

In its 40th year, ISDA remains firmly focused on the future, with a wide-ranging work program for 2025. Among other projects, this year will see further progress on a landmark review of the 1998 FX and Currency Option Definitions, a continued push towards greater digitization of documentation and the planned launch of the ISDA Notices Hub.

It’s also a time of change on the ISDA board of directors, as Eric Litvack recently stepped down from his role as chairman. Reflecting on his 10 years at the helm, Litvack describes ISDA as “professional, accountable and goals-driven”, aiming at the very highest standards and delivering exceptional breadth of value.