ISDA Publishes the 2013 ISDA Arbitration Guide

The International Swaps and Derivatives Association, Inc. (ISDA) today published the 2013 ISDA Arbitration Guide.

The 2013 ISDA Arbitration Guide provides guidance on the use of an arbitration clause with the 1992 and 2002 versions of the ISDA Master Agreement. It includes a range of model arbitration clauses covering a number of institutions and seats of arbitration around the globe. The Guide is supplemental to ISDA User’s Guide and amends Section 13 of the ISDA Master Agreement. It provides the first comprehensive set of ISDA model arbitration provisions and can be used worldwide.

ISDA issued the Guide following an extensive consultation process with a diverse group of market participants. It has been prepared in response to a growing trend in derivatives trading over recent years to make use of arbitration as an alternative way of dispute resolution compared to the traditional choice of court litigation. This development is also owing to the growing diversity of counterparties and jurisdictions that are involved in derivatives trading globally. For example, in several jurisdictions the enforceability of arbitral awards might be more easily achievable than the enforcement of a foreign court judgment. This is particularly the case in emerging market jurisdictions. In response to this trend, ISDA sought to assist the broader market by providing model arbitration clauses tailored to the ISDA Master Agreement.