ISDA and ADR: A Brief History of a Long Relationship

Abstract

ISDA has been an effective proponent of, and exercised thought leadership regarding, alternative dispute resolution (ADR) for more than three and a half decades – since the formation (actually before that) of ISDA itself.
That may surprise many. When ISDA first published its Arbitration Guide in 2013, it was said to offer a window on a potential change in thinking; an alternative to the more traditional preference in the financial markets for court determination of party disputes.
But in fact, ISDA and its documentation represent a long effort by the derivatives markets to minimize the role of courts, at least for any disputes related to the terms or operation of the parties’ agreement itself – certainty, speedily delivered, often being preferred even, at least in the abstract, over justice.