Isda 2002 Master Agreement User`s Guide
5. 2002 Master Memorandum of Understanding and bilateral amendments………… 3 6. Implementation and use of the architecture of 2002………… 4 In 2003, for example, the market had to introduce both the 2002 ISDA Equity Derivatives Definitions and the 2003 ISDA definitions for credit derivatives, which together consumed large amounts of management time in the first half of this year. The protocol provided market participants with an effective multilateral method of amending 13 ISDA definition brochures and 5 credit support documents to reflect the new terminology and provisions of the 2002 agreement. For the most part, it has updated these pre-2002 documents, which were not drafted under the 2002 agreement and contain concepts of non-2002 agreements, such as market listing and losses. By publishing the 2002 Master Agreement Protocol and there is a general “wait-and-see” or “after you” attitude on the market. I think that more big banks need to introduce the 2002 agreement more vigorously if it is to be caught up. There is a tendency to fall back on the 1992 agreement with the lowest counterpart and will the ugly duckling become a beautiful swan? I think it`s fine with time. I am very much in favour of the 2002 agreement and I consider it to be a great improvement over the 1992 agreement, and more importantly, in line with the current state of the non-prescription derivatives market. The European derivatives market is currently very saturated and naturally tends to give greater priority to the treatment of the famous 1992 agreement than to try to negotiate the lesser-known 2002 agreement. Man dear quarters it believed that the 1992 Agreement already provides adequate protection and there is no need to change.
At the time, ISDA believed that the 2002 agreement would be quickly taken over by institutions in North America for new counterparties, but that progress in Europe and Asia would be slower. In case it was quite slow everywhere. 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. It can be said with fugue and A that this reaction was only a fraction of the 1132 market players who complied in 1998 with the pioneering PROTOCOL of the ISDA on the European Monetary Union. Indeed, many of those who signed the 2002 Protocol did so only at the last minute, which probably resulted in the considerable administrative work that would ultimately be necessary to ensure a smooth return between 2002 and not 2002 in the general definitions and products and credit support documents of isDA. On 27 November 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). Among the components of the 2002 agreement, most of the comments from market participants focus on three points: finally, many documents that need to be recycled in the 2002 agreement must be recycled. Some received market training 18 months or more ago, pending faster implementation of the 2002 agreement. User`s Guide to the Isda 2002 Master Agreement