No. The Protocol concerns only agreements in the form of the 2002 Framework Agreement. It does not affect agreements in any form other than the 2002 Framework Agreement. For example, it does not affect existing 1992 framework agreements (or transactions governed now or in the future by that 1992 framework agreement or other related credit support provisions) or future 1992 framework agreements. The 2002 framework agreement should be the model agreement for participants in international OTC derivatives markets. Until the Association updates all of its documentation, the parties to the 2002 framework agreements intend to use certain documents from the pre-2002 period under these agreements. In this context, market participants that have not yet decided to conclude a framework agreement for 2002 should also consider signing the protocol. In submitting the Letter of Accession, the Acceding Party agrees that the provisions of each selected Annex shall apply to any 2002 Framework Agreement with another Acceding Party if or to the extent that its choice of such Annex is consistent with that contained in the Letter of Accession submitted by the other Party. However, a Contracting Party may, at any time during the compliance period, provide ISDA with a new notification indicating an earlier time limit for its own compliance. Such a letter will result in membership being revoked on the date specified for the future. Although the amendments already made are not repealed, a subsequent accession by one of the counterparties of the acceding Party in connection with a 2002 framework agreement between them will be invalid.
As ISDA has decided to extend the membership period, acceding Parties will also have the possibility to send ISDA a notification no later than 12 March 2004, retroactive to 1 March 2004 as the earlier deadline. Of course, trading partners can negotiate bilaterally and accept changes outside the scope of the Protocol. The Protocol in no way impedes freedom of contract, whether or not the Parties have acceded to it. If Parties to a 2002 Framework Agreement wish to amend the provisions of the Protocol, as they would otherwise apply, for example, to a transaction containing a specific Isda definition brochure, section 5 (b) of the Protocol describes how they should do so. How do I know who has acceded to the Protocol to the 2002 Framework Agreement? How long do I have to participate in the 2002 Framework Agreement Protocol? Is there a deadline? The protocol does not provide for changes to confirmations based on one of ISDA`s long confirmation models, as these confirmations not only contain standard sets of definitions and provisions, but are self-contained and vary the types of provisions that lead to the problems addressed in the protocol rather than confirmations based on ISDA`s abbreviated confirmation templates. However, Parties using such confirmations under a 2002 Framework Agreement may wish to consider issues similar to those addressed in the Annexes to the Protocol. For example, paragraphs 7 (b) (v) (B) and (C) of the long FORM ISDA “Confirmation of the OTC credit swap transaction a single non-sovereign reference entity” refer to the quotation and loss of the market. For similar reasons, the protocol does not provide for changes to THE STANDARD ISDA “Bridges” forms. Parties wishing to use some form of ISDA bridge will need to negotiate and reach agreement on a number of issues, and the final form of the transition provision will likely be carefully tailored to their individual relationship. One of the issues that the parties should consider before using the 2001 Inter-Agreement Bridge or the 2002 Energy Impact Bridge with a 2002 Framework Agreement is that these bridges contain references to other forms of the ISDA Framework Agreement and do not relate to the closure amount method in the 2002 Framework Agreement. The Protocol provides for a number of amendments which are deemed to have been made to certain documents prior to 2002 when those documents are used under a 2002 Framework Agreement.
Some problems arise only in a document from the period before 2002, but a number of problems arise in more than one document from the period before 2002 and are therefore dealt with in more than one annex: No. Participation in the Protocol is not limited to market participants who have already concluded a framework agreement in 2002. The Protocol has been specifically designed to be open to any market participant that has concluded or could conclude a 2002 framework agreement. It is forward-looking in so far as the provisions of the Protocol agreed between them apply to their relations under that 2002 Framework Agreement where two acceding Parties conclude a 2002 Framework Agreement. Previous ISDA protocols, which dealt with issues arising from the introduction of the euro, were relevant in the context of pre-existing transactions with the “old European currencies” (the former currencies of the European Union Member States that adopted the euro). .