For Immediate Release Tuesday, July 15, 2003
For More Information,
Please Contact:
ISDA
Kennedy & Company Tel (914) 961-2436
ISDA PUBLISHES 2002 MASTER AGREEMENT PROTOCOL
NEW YORK, Tuesday,
July 15, 2003 – The International
Swaps and Derivatives Association (ISDA) today announced publication of a Protocol
for the 2002 ISDA Master Agreement. The 2002 Master Agreement Protocol is
available from the ISDA web site at www.isda.org.
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. The Protocol enables firms to amend eighteen
ISDA definitional booklets and credit support documents to reflect the new
terminology and provisions set forth in the 2002 Master Agreement. The ISDA
documents published before 2002 were not drafted with the 2002 Master Agreement
in mind and accordingly, those documents contain references to the 1992 Master
Agreement and concepts that are not included in the 2002 ISDA Master Agreement
(such as Market Quotation and Loss). The
Protocol aims to provide a simple solution to these technical difficulties.
“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
The
Protocol is open to ISDA members and non-members alike. In addition, the Protocol does not require
execution of a 2002 ISDA Master Agreement in order to adhere to the
Protocol. Amendments made by submission
of an adherence letter simply take place at such time the parties subsequently
execute a 2002 ISDA Master Agreement, even if this is after the conclusion of
the adherence period.
The
adherence period for the Protocol will be open for over seven months, ending on
March 1, 2004. ISDA members and non-ISDA members are encouraged to adhere to
the Protocol. The ISDA web site offers the text of the Protocol and form of adherence
letter, guidance on the mechanics of the Protocol, answers frequently asked
questions and provides opinions of the enforceability of the Protocol approach
under
The International Swaps and Derivatives Association
(ISDA) is the global trade association representing leading participants in the
privately negotiated derivatives industry. ISDA was chartered in 1985, and
today has more than 600 member institutions
from 46 countries. These members include most of the world's major
institutions that deal in privately negotiated derivatives, as well as many of
the businesses, governmental entities and other end users that rely on
over-the-counter derivatives to manage efficiently the financial market risks
inherent in their core economic activities.
Information about ISDA and its activities is available on the
Association's web site: www.isda.org.
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