The Master Agreement of 2002 It is now more than a year since ISDA published the 2002 Master, and it is fair to say that it does not yet need to oust its 1992 predecessor as a standard master-agreement for the documentation of international relations of OTC derivatives. Those who are not yet thinking about using the 2002 Master should be aware that a trend is developing in favour of the new agreement. How can I verify the authenticity of the other signatures of the 2002 Master Agreement Protocol? Demand for the 2002 agreement is low. The major banks have generally prepared their timetables for 2002, but only commit to the counterparty`s request. The institutions that vigorously promoted the 1992-93/94 agreement and had to wait many months to complete it are reacting more reactively. Many are waiting for the major banks to obtain the authorizations of the political committee for the implementation of the 2002 agreement before sending them their calendars for 2002 or reviewing their own. The minutes do not provide for changes to confirmations based on any of ISDA`s long-term confirmation models, as these confirmations not only contain standard sets of definitions and rules, but are in themselves and are more likely to vary the types of provisions that lead to the problems addressed in the minutes than confirmations based on isDA short version models. However, parties using such confirmations as part of a 2002 master agreement will want to consider issues similar to those contained in the protocol`s annexes. In the high-form ISDA «Confirmation of OTC Credit Swap Transaction Single Reference Entity Non-Sovereign,» paragraphs 7 (b) (v) (B) and (C) refer to the listing and loss of the market. Over the past 18 months, ISDA has sought to promote the use of the 2002 agreement as follows: — There are supporters and opponents of the shorter deadlines of the 2002 agreement, the payment of amounts and the demonstrations of force majeure. These important issues will, of course, be resolved by possible negotiations on the 2002 agreement. Introduction and overview of the Master Agreement Protocol 2002 On November 27, 2001, the International Swaps and Derivatives Association distributed to its members the first draft of the new version of the MASTERagrement ISDA (the 2002 agreement). This led to several mass meetings in London and New York and five other projects before being published on 8 January last year.

About 100 of the 600 members participated. The protocol allows companies to modify 18 Isda definition brochures and credit support documents to reflect the new terminology and provisions of the 2002 master contract. It does not require the execution of a 2002 Master Isda contract for a participant to comply. Isda stated that the compliance deadline will expire on March 1, 2004. The aversion/suspicion of the provisions contained in the 2002 agreement For any operator wishing to use pre-2002 documents with a 2002 masteragrement (now or in the future), the alternative to compliance with the protocol is to address the various issues contained in the timetable of each 2002 framework contract and, possibly, in any confirmation of a transaction governed by such a 2002 master contract, as well as any credit assistance document relating to such a master agreement of 2002.