An insight into the upcoming ISDA 2021 Interest Rates Definitions

ISDA has published many definitions over the years, some of them are aseet-class specific, while apply to specific processes for all asset-classes. The following are some of the asset-specific common definitions.

Asset Class / Process Definitions
Rates 2006 ISDA Rates Definitions
2000 ISDA Rates Definitions
Credit 2014 ISDA Credit Derivatives Definitions
2003 ISDA Credit Derivatives Definitions
Equity 2011 ISDA Equity Derivatives Definitions
2002 ISDA Equity Derivatives Definitions
FX 1998 FX and Currency Options Derivatives
Commodity 2005 ISDA Commodity Definitions
Novation 2004 Definitions

The 2006 ISDA Rates Definitions set has been amended almost 70 times since its publication via various supplements. In the last 14 years, many changes (both large and small) have occured in the market place. ISDA responded to these changes through various suplements but this itself created issues because market participants have to refer not only to original definition set but also all of its supplements. This is cumbersome, time consuming and prone to errors. Therefore, ISDA has decided to replace these definitions with a new definition set named "2021 ISDA Interest Rate Derivatives Definitions".

ISDA has planned to make available these definitions via web-versioning platform, which will enable the market participants to access everything electronically, instead of printed materials or pdf formats. This also means that all updates will be released electronically and the supplement methods of updation will probably cease. The latest version of the definitions will include the contents of the old version and the updates. This way, market participants will have to refer only to the latest version.

ISDA is releasing these definitions keeping in mind its focus on the Common Domain Model (which has been discussed in an earlier article). The following are some of the important changes.

These definitions are expected to be published by May 17, 2021 and their adoption by June 21, 2021.


Updation History
First updated on 24th February 2021.