The objective of the protocol is to provide market participants with an effective way to address various problems that arise when certain documents published by ISDA before 2002 (“pre-2002 documents”) are used with a 2002 masteragrement. These questions are due to the fact that the pre-2002 documents were not developed in the run-up to the 2002 Masteragrement. In fact, many of them were published taking into account the Masteragrement of 1992. They therefore contain references to the 1992 masteragrement and references to certain terms and terms in the 1992 masteragrement and not in the 2002 master`s contract (for example. B, listing and loss). The protocol aims to find simple solutions to any technical difficulties that might result. For each market player, whether pre-2002 documents are used with a 2002 masteragrement (now or in the future), the alternative to compliance with the protocol is to deal with the various issues in the calendar of each master contract 2002 that it concludes and perhaps in any confirmation of a transaction subject to such a 2002 management contract and any credit assistance documents relating to such a 2002 master`s contract. These issues could be addressed by individually negotiated provisions or by the inclusion of relevant provisions of the protocol as a reference. However, in both cases, bilateral negotiations would be necessary, which could take time and therefore be costly.
On July 15, 2003, ISDA released its Master Agreement Protocol 2002. The protocol reflects an innovative procedure for making various standardized changes to one or more documents dating back to before 2002 when these documents are used as part of a 2002 master`s contract. It is based on the principle that the parties may agree with one or more other parties that certain conditions and provisions apply to their respective relationships now and/or in the future (unless they expressly agree otherwise). For similar reasons, the protocol does not provide for any changes to the standard form of “bridges” of the ISDA. Parties wishing to use some form of ISDA bridge must negotiate a number of issues and reach an agreement, and the final form of the transition decision will likely be carefully tailored to their individual relationship. Among the issues that the parties wish to consider prior to the use of the Cross-Agreement Bridge in 2001 or the 2002 Energy Agreement Bridge with a 2002 Master Agreement, these bridges contain references to other forms of the ISDA management contract and also do not refer to the final amount method in the 2002 Masteragrement. Some counterparties have avoided using the 2002 agreement to avoid disrupting their existing AN links to support ISDA loans, although there is assistance here through the terms of modification of ISDA`s credit support annexes under English and New York legislation. There are supporters and opponents of the shorter deadlines of the 2002 agreement, the payment measure for the amount of the close-out and the availability of Force Majeure Event. These important issues will, of course, be resolved by possible negotiations on the 2002 agreement. However, an adjacent party may, at any time during the reference period, send the ISDA another notification indicating a deadline for its own compliance.