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-In this backgrounder the JC will look deeply at what the basic point is of an ISDA Master Agreement. Why can’t you just crack on and trade swaps without all this dusty paperwork? What is wrong with [[long-form confirmations|long-form confirmations?]]
+In this backgrounder the JC will look deeply into what is the basic point of an {{isdama }}. What does it do, why do you need one, and why can’t you just crack on and trade swaps without all this dusty paperwork?
-This might seem like pocket-calculator stuff to seasoned veterans, but it never hurts to stop and ponder what seems to be the bleeding obvious. The JC encountered his first {{aies}} fully thirty years ago now, and he still found himself discovering things he didn’t know, or hadn’t occurred to him, as he prepared this essay.
+Now this might seem like pocket-calculator stuff to you, my seasoned veterans, but it never hurts to stop and ponder what seems to be the bleeding obvious.
+Going back to basics is bracing for the spirit. The JC encountered his first {{aies}} fully thirty years ago now — shout out the GFF — and he still finds himself discovering things he didn’t know, or having things dawn upon him. Plenty did, as he prepared this essay.
+====On becoming a shibboleth====
+Through habit and inattention we work around the [[affordance]]s of our business. What starts as a practical shortcut — the shortest possible route to market — can, through acquiescent disregard become a sacred cow — a shibboleth — an ''obstacle'' on the road to transaction. So it is with the {{isdama}}. Once precisely an ''[[affordance]]'' —an artefact for quickly tidying up and dispensing with formalities it would be laborious to repeat for every trade — it became a mountain of its own. Sure, you only need to climb it, from the bottom, once, but it has become a three-month climb. And one does not scale an ISDA master agreement the way Alex Honnolt scales El Cap. There is the entire modernist machinery of the multi-national corporation campaign that you must take with you.
+There are those who miss the good old days. Where bank legal departments have not legislated outright against them — most have — the temptation now is to ask “must we really have an ISDA? Would not a [[long-form confirmation]] do?
+This is how the military-industrial complex of agency operates: it shapeshifts to create work to occupy the available rent.<ref>Remind me to do an article on the [[rent carrying capacity]] of financial services.</ref>
+====The three aims of an ISDA====
+The {{isdama}} is, as we know, a framework under which two “[[counterparties]]” can transact [[over-the-counter]] derivatives — [[swap]] contracts. Besides its original appeal as an [[affordance]] it has three main aims: it is a [[relationship contract]]; it is a [[Credit risk mitigation|credit risk management tool]], and it is a [[capital optimisation]] tool.
-The {{isdama}} is, as we know, a [[Relationship contract|framework agreement]] under which parties can transact [[swap]] contracts. The ISDA has three main goals: it is a [[relationship contract]]; it is a [[Credit risk mitigation|credit risk management tool]], and it is a [[capital optimisation]] tool.
 ==== Relationship contract ====
 [[File:Wedding.jpg|250px|thumb|right|A relationship contract, yesterday.]]