ISDA Issues Updated Master Agreement for Commodity Derivatives Covering Digital Assets

FOR IMMEDIATE RELEASE — The International Swaps and Derivatives Association (ISDA) has published an updated Master Agreement for Commodity Derivatives, incorporating provisions for digital asset settlement and delivery, ESG-linked derivative structures, and enhanced cybersecurity and business continuity obligations that reflect the changed risk environment since the previous version.\n\nThe updated agreement, designated ISDA Commodity Derivatives Master Agreement 2025, replaces the 2017 version and incorporates four years of market consultation, regulatory feedback, and operational experience gathered from ISDA's 960 member institutions globally.\n\nKey changes include: a new Schedule 12 covering digital asset delivery mechanisms for commodity-linked digital tokens; updated force majeure provisions that explicitly address cyber incidents and pandemic-related disruptions; standardised ESG-linked commodity derivative structures for carbon-adjusted commodity indices; and enhanced representations and warranties around sanctions compliance and beneficial ownership.\n\n"Commodity derivatives markets have evolved substantially since 2017, and the legal documentation infrastructure needed to evolve with them," said ISDA CEO Scott O'Malia. "The 2025 Master Agreement provides the market with standardised, legally certain documentation that reflects current market practice and regulatory requirements."\n\nISDA estimates that over $25 trillion of commodity derivative transactions are documented under ISDA Master Agreements, making the update operationally significant for the entire commodity derivatives market. Counterparties will need to determine whether to renegotiate existing agreements to move to the 2025 version or maintain existing documentation for in-force transactions.