The protocol was open to ISDA members and non-members who did not have to reach a 2002 agreement to comply with the protocol. Definition decisions made under the letter to this effect will come into effect whenever the parties implement a 2002 agreement in the future, even if this is the case after the protocol was concluded on June 1 due to compliance (after being extended by three months by the ISDA). 287 market participants complied with the protocol. Some major North American and European banks introduced the 2002 agreement as their agreement of choice with new counterparties. However, when a counterparty insists on negotiating a 1992 agreement, it will generally accept. 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). 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. This time, ISDA indicated that there was no obligation to amend the 2002 agreement. The market is familiar with the 1992 agreement and, in this case, familiarity is more a source of consolation than contempt.
Does 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. What is surprising is that the structure of the 2002 calendar is very similar to that of the 1992 agreement, with the exception of Part 4, point n), and even the issues dealt with are not ”missile science”. By obtaining 41 legal opinions for their members on the applicability of agreements relating to overlap networks and other issues under the 2002 agreement. The objective is to take advantage of the 2002 agreement to enable financial institutions to achieve regulatory capital savings in their trading books, which they can already do with the 1992 agreement; Disaffection/suspicion of provisions of the 2002 agreement – There are supporters and opponents of the shorter grace periods of the 2002 agreement, the payment of the amount and the provision of force majeure demonstrations.