Which version of the ISDA Definitions should be used?

On 12 January 2007 ISDA published a new version of its definitions known as the "2006 ISDA Definitions" ("2006 Definitions"), which update the 2000 ISDA Definitions ("2000 Definitions"). The principal difference between the 2006 Definitions and 2000 Definitions are set out in "Differences between 2000 and 2006 ISDA Definitions".

Transactions governed by the 2000 Definitions continue to be governed by those definitions unless the parties expressly agree to adopt the 2006 Definitions. 

Generally, given that there are a number of improvements in the 2006 Definitions, AFMA recommends that parties incorporate the 2006 Definitions rather than the 2000 Definitions when they enter into a new Agreement. The Guide is therefore prepared on the assumption that parties newly entering into an Agreement incorporate the 2006 ISDA Definitions into the Agreement. Although it remains possible to incorporate the 2000 ISDA Definitions, this is not recommended.

Last Update Date 29 Jun 2011