ISDA and EMTA Publish 2026 FX Definitions

ISDA and EMTA, the trade association for emerging markets, have jointly published a revised set of standard definitions for 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 22 November, 2027, and will replace the 1998 FX and Currency Option Definitions as the market standard for FX derivatives transactions, the bodies state, adding that from the 2027 implementation date, Swift is no longer expected to support the 1998 definitions.

The updated definitions include revisions to disruption events and fallbacks for deliverable transactions, and incorporate the EMTA template terms and market practices for non-deliverable FX transactions. They also 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,” the bodies state. This document is available in digital form on the ISDA MyLibrary platform, and the bodies say 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,” says Scott O’Malia, chief executive of ISDA. “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.”

Michael Chamberlin, executive director of EMTA, and Leslie Payton Jacobs, long-time managing director and currently a consultant to EMTA, reiterated the association’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”.

Meanwhile, Katherine Tew Darras, ISDA’s general counsel, stresses the efficiency gains from the update, observing, “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,” she adds.