"The purpose of the protocol is to offer market participants an efficient way to address various issues that arise when certain documents published by Isda before 2002 are used with a 2002 Isda master agreement,” Isda said in a release.
Prior to publication of the 2002 agreement, Isda published a number of definitional booklets and credit support documents. These documents refer to terminology and provisions set forth in the 1992 Isda master agreements. The protocol permits these various documents to be amended to reflect the new terminology and provisions set forth in the 2002 agreement.
"With the 2002 master agreement protocol, Isda is enabling members to amend several Isda publications on a multilateral basis, rather than through one-on-one negotiations between all counterparties," said Robert Pickel, Isda's chief executive.
The protocol enables firms to amend 18 Isda definitional booklets and credit support documents to reflect the new terminology and provisions set forth in the 2002 master agreement. It does not require execution of a 2002 Isda master agreement in order for a participant to adhere to it. Isda said the adherence period will end on March 1, 2004.