ISDA and EMTA, Inc., the trade association for emerging markets, have jointly published a revised set of standard definitions for foreign exchange (FX) derivatives transactions, which update key market practices and consolidate various FX and FX-related product templates and provisions into an integrated document.
The 2026 FX Definitions will be implemented on November 22, 2027, and will replace the 1998 FX and Currency Option Definitions as the market standard for FX derivatives transactions. From the 2027 implementation date, global financial messaging services provider Swift is no longer expected to support the 1998 definitions.
The updated FX definitions include revisions to disruption events and fallbacks for deliverable transactions, incorporate the EMTA template terms and market practices for non-deliverable FX transactions, contain provisions for calendar adjustment events and align the calculation agent standards with those in the 2021 ISDA Interest Rate Derivatives Definitions. Importantly, the 2026 FX Definitions also consolidate the various supplements and provisions published by ISDA and EMTA since 1998 into an integrated document and eliminate the need for separate master confirmation agreements. Available in digital form on the ISDA MyLibrary platform, a revised version of the definitions will be published in full each time a future update is required.
“The 2026 FX Definitions reflect the various changes in regulations, market practices and technology that have occurred since the last definitions were published in 1998. The result is a modern, digital set of definitions that will keep pace with future developments and support the safe and efficient trading of FX derivatives in the 21st century,” said Scott O’Malia, ISDA’s Chief Executive.
Michael Chamberlin, Executive Director of EMTA, and Leslie Payton Jacobs, long-time Managing Director and current Consultant, reiterated EMTA’s commitment to the seamless and successful unification of the various FX industry tools and products under a single administrative and documentary umbrella, which will enhance efficiencies in the trading and settlement of FX derivatives products generally.
“The new definitions pull significant ISDA and EMTA documentation published since 1998 into a single document, making them much easier to navigate, while the digital format means the definitions can be seamlessly updated whenever necessary. With an implementation date of November 2027, market participants have plenty of time to prepare for the switch, and ISDA will continue to support the market as these important changes are made,” said Katherine Tew Darras, ISDA’s General Counsel.
The 2026 FX Definitions are available here.
ISDA has also published a roadmap to help guide market participants in their implementation efforts, as well as a fact sheet highlighting the key changes. Additional educational materials will be published in the coming months to assist with the industry transition.
More information about the 2026 FX Definitions is available on the FX Definitions Update InfoHub. ISDA members can also join the ISDA FX Operations Group and the ISDA FX Definitions Update Group to follow implementation developments.
For Press Queries, Please Contact:
Nick Sawyer, ISDA London, +44 20 3808 9740, nsawyer@isda.org
Joel Clark, ISDA London, +44 20 3808 9760, jclark@isda.org
Christopher Faimali, ISDA London, +44 20 3808 9736, cfaimali@isda.org
Michael Milner-Watt, ISDA London, +44 20 3808 9777, mmilner-watt@isda.org
Nikki Lu, ISDA Hong Kong, +852 2200 5901, nlu@isda.org
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