A transaction that is privately negotiated and entered into between two parties directly. As distinguished from a bilateral loan, this term is commonly used to refer to derivatives transactions, usually swaps, that are entered into off-exchange and which are not cleared through a clearinghouse. The clearing process interposes a third party, the clearinghouse, between the parties to the transaction, collecting margin collateral from both and guarantying the performance of each under the transaction. Bilateral derivatives transactions are documented using the ISDA Master Agreement and other ISDA documents (see Practice Note, ISDA Documents: Overview (US)). Other secured bilateral transactions include repos and securities lending transactions.