How does the 2001 ISDA Credit Support Protocol work?
The Protocol reflects an innovative procedure that allows for the amendment of the 1994 ISDA Credit Support Annex and/or the 1995 Credit Support Annex. The Protocol builds on the simple principle that parties to such agreements may make an offer to one or more of their counterparties to amend any outstanding credit support annexes. A bank, corporation or other derivative user would indicate its participation in the Protocol arrangement by sending an Adherence Letter (a signed original, together with a conformed copy) to ISDAs office in London or New York. This allows the firm to specify which of five standardized amendments it wishes to make with other Protocol adherents. By submitting the Adherence Letter, the firm agrees that each outstanding 1994 ISDA Credit Support Annex and/or 1995 ISDA Credit Support Annex is amended in all areas where an election made in its Adherence Letter matches that made in an Adherence Letter submitted by one of its counterparties. The amendment and adhere
