Perhaps the most important aspect of the ISDA`s governing contract is that the master`s agreement and all the confirmations it contains form a single agreement. This is very important (particularly for regulated financial companies) because it allows parties to an ISDA lead contract to aggregate the transactions in progress by each of them in all transactions under way under that ISDA management contract and replace them with a single net amount bound by one party to another. The compensation, referred to in Section 2, point c), of the ISDA executive contract, allows the parties to pay the amounts payable on the same day and in the same currency. Events that trigger a credit redirection transaction are defined in a bilateral swap confirmation, which is a transaction document that typically refers to a senior contract of the International Swaps and Derivatives Association (ISDA), previously executed between the two counterparties. ISDA is a global over-the-counter derivatives trading organization and provides definitions and sets the standard for what we consider credit events. If so, the settlement of disputes between counterparties in derivatives transactions depends on the nature of the derivative and the terms of the contract in which trading is established. Derivatives traded in the United States are generally regulated by the Commodities Futures Trading Commission (CFTC) and, according to the rules of its exchange, litigation is reprimanded by the National Futures Association.  Most OTC derivatives disputes are under negotiation; ISDA Masteragrement is not in a position to delegate to the courts in London and New York the jurisdiction over disputes arising from derivatives transactions.  However, some actual agreements are amended to provide for arbitration.
 This concept of a single agreement is an integral part of the structure and is part of the online protection offered by the framework contract. The fact that all transactions are the sole contract enhances the ability to close these transactions and obtain a one-time net amount payable in the event of default. The framework contract allows the parties to calculate their net financial commitment in over-the-counter transactions, i.e. a party calculates the difference between what it owes to a counterparty under a master contract and what the consideration owes under the same agreement. Although the master`s agreement, schedule and confirmations are the main documents published by ISDA, they also publish a large number of other documents. The definitions of isDA are brochures with standard definitions and other terms and provisions.  As a general rule, a brochure is limited to one type of derivative transaction (i.e. credit risk swaps).  Isda manuals are explanatory notes on the provisions contained in documents published by ISDA.  User manuals also contain suggestions for additional provisions that the parties wish to include in their agreements.
 The protocols are also published by ISDA and allow users to modify all pending contracts using ISDA documentation.  The master contract is the central document around which the rest of the ISDA documentation structure occurs.