The International Swaps and Derivatives Association (ISDA) has launched an Irish law version of its industry-standard Master Agreement as part of its post-Brexit strategy.

David Stanton, minister of state in the Department of Justice, said the move was a “tremendous vote of confidence” in Irish law.

Users of the ISDA Master Agreement will now be able to choose Irish law to govern their derivatives contracts and the Irish courts to determine related disputes. To date, derivatives contracts have primarily been governed by the laws of England or New York State.

The ISDA has also published a new French law version.

This initiative, supported by McCann FitzGerald, forms part of ISDA’s strategy to provide users of its documentation with tools to future-proof their contracts against the uncertainties presented by Brexit.

Welcoming the move, Mr Stanton said: “Ireland is already a jurisdiction of choice for a number of markets.

“The decision will also help boost Ireland’s profile and stimulate an increased acceptance by the international finance and business community of Irish law as a governing law of choice for cross-border transactions and legal dispute resolution, thus offering a significant boost in potential new business for the Irish legal services market.”

ISDA CEO Scott O’Malia said: “Financial and non-financial businesses across the world depend on derivatives to manage risks to which they are exposed. ISDA’s role is to facilitate safe and efficient derivatives markets. A particular focus for us is Brexit and while we can’t predict its outcome with certainty, we can prepare for some of the possible outcomes.

“The launch of the new Master Agreements is intended to provide additional options to users, so they can trade under whatever agreement best meets their needs.”

Judith Lawless, partner at McCann FitzGerald, added: “We have worked closely with ISDA to make Irish law available as an additional governing law option for the ISDA Master Agreement.

“Following the UK’s departure from the EU, Ireland will be the largest common law jurisdiction in the bloc.

“This initiative will be seen as a welcome development by users of the ISDA Master Agreement as the very limited differences between the existing English law, and new Irish law, versions, and the similarities that exist between English and Irish contract law and legal systems, will be viewed as points of strength and reassurance that their expectations as to how the Master Agreement works should be respected.”