What is the purpose of the 2005 Novation Protocol?
The purpose of the Protocol is to offer parties to the various Master Agreements published by ISDA an opportunity to agree to a uniform process by which consents to transfer of interests in Credit Derivative Transactions and Interest Rate Transactions (Covered Transactions as defined in the Protocol) are obtained. The Protocol sets out a process by which the Transferor, the Transferee and the Remaining Party will communicate prior to or concurrent with a transfer by novation of a Covered Transaction and anticipates that the consent to transfer must be requested and provided using one of the specified electronic means such as email, electronic messaging systems or electronic communication systems. The Protocol makes clear that the effectiveness of the transfer between Transferor and Transferee is conditioned solely on receipt of the consent of the Remaining Party, and provides that if by the end of the day on which the transfer is agreed the consent of the Remaining Party is not receive
