What is the purpose of the 2002 Master Agreement Protocol?
The purpose of the Protocol is to offer market participants an efficient way to address various issues that arise when certain documents published by ISDA before 2002 (“Pre-2002 Documents”) are used with a 2002 Master Agreement. These issues arise because Pre-2002 Documents were not drafted with the 2002 Master Agreement in mind. In fact, many of them were published with the 1992 Master Agreement in mind. They therefore contain references to the 1992 Master Agreement and references to certain terms and concepts contained in the 1992 Master Agreement that are not contained in the 2002 Master Agreement (such as Market Quotation and Loss). The Protocol aims to provide simple solutions to any technical difficulties that might arise as a result.
