For any market player wishing to use documents dating from before 2002 with a 2002 framework contract (whether present or future), the alternative to compliance with the protocol is to answer the various questions annexed to each 2002 framework contract and possibly any confirmation of a transaction governed by such a 2002 framework agreement, and in each credit support document for such a 2002 framework agreement. The issues could be addressed by individually negotiated provisions or by reference to the relevant provisions of the Protocol. However, in both cases, bilateral negotiations would be necessary, which could be time-taking and therefore costly. Among the elements of the 2002 agreement, most of the comments from market participants focus on three points: – Counterparties can obviously negotiate and approve all amendments that do not fall within the scope of the protocol. The Protocol in no way impedes freedom of contract, whether or not the parties have complied with the Protocol. If the parties to a 2002 framework agreement wish to amend the terms of the protocol, as they would otherwise do, for example, for a transaction involving a specific GDR definition brochure, Section 5(b) of the protocol sets out how they should do so. Prior to the publication of the 2002 agreement, ISDA published a series of definition brochures and credit support documents. These documents refer to the terminology and provisions of the 1992 ISDA Framework Treaties. The Protocol makes it possible to amend these various documents to take account of the new terminology and the provisions of the 2002 Agreement.
The fact that an institution modifies all the contracts concerned in order to support these standard changes would represent a considerable time and cost if it were involved in bilateral negotiations between all counterparties. ISDA therefore supports a multilateral mechanism for amendment – the Protocol. How can I obtain a copy of the 2002 ISDA Framework Protocol and other relevant information? No no. The Protocol will cover the 2002 Framework Agreements, irrespectical of the applicable law of the Agreement. However, parties to a 2002 framework agreement, which is subject to a law other than English law or New York law, will want to check whether there is legal support for the application of the protocol when it is used in respect of 2002 framework contracts subject to those laws. . .