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Why do the terms of the Protocol apply only to Credit Derivative Transactions and Interest Rate Transactions?

April 26, 2017credit derivative Interest rate Protocol terms transactions

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Why do the terms of the Protocol apply only to Credit Derivative Transactions and Interest Rate Transactions?

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The experience of market participants is that issues with novations are most acute with respect to Credit Derivative Transactions and Interest Rate Transactions. Accordingly, ISDA decided that the Protocol should apply to these types of transactions only. ISDA will consider a subsequent protocol that would expand the applicability of the terms of the 2005 Novation Protocol to all transactions subject to an ISDA Master Agreement.