The World Bank Group institutions International Bank for Reconstruction and Development, International Development Association and International Finance Corporation signed a memorandum of understanding with the International Swaps and Derivatives Association to deepen cooperation on improving access to international derivatives markets in emerging markets and developing economies. The agreement is aimed at strengthening domestic capital markets by helping countries build the financial infrastructure needed to manage currency and interest rate risk, attract investment and support local currency financing. The cooperation will cover policy dialogue, research and capacity building, including workshops, seminars and training on derivatives, risk management and standard ISDA documentation. It also includes joint research and market analysis, along with engagement with public sector stakeholders on legal and regulatory reform. The World Bank and ISDA framed the need around gaps in legal, regulatory and institutional foundations such as close-out netting frameworks and standardized documentation, and cited a 2023 ISDA survey showing that 19 of 44 surveyed emerging and developing economies restrict which participants can use derivatives. Under the memorandum, the parties will meet periodically to coordinate activities and advance shared objectives.
World Bank2026-07-15
World Bank signs MoU with ISDA to deepen derivatives market access in emerging and developing economies
The World Bank Group institutions IBRD, IDA and IFC signed an MoU with ISDA to improve access to international derivatives markets in emerging markets and developing economies. The cooperation will focus on legal and regulatory reform, research and capacity building to help countries develop the infrastructure needed for risk management and capital market development.