How does the 2005 Novation Protocol work?
The Protocol reflects an innovative procedure which allows for various standardized amendments to be deemed to be made to the relevant ISDA Master Agreement. It builds on the principle that parties may agree with one or more other parties that certain terms and provisions will apply to their respective relationships (unless and until they specifically agree otherwise). The Protocol provides a multilateral mechanism which enables multiple parties to agree that, in respect of any Master Agreement between any two of them, various standardized amendments will apply. Market participants (“Adhering Parties”) indicate their participation in the Protocol arrangement by sending a letter (an “Adherence Letter”) to ISDA by email to protocol@isda.org. The Adherence Letter allows the Adhering Party to specify that Annex 1 to the 2005 Novation Protocol, containing standardized amendments to its Master Agreement, will apply with other Adhering Parties. By submitting the Adherence Letter, the Adhering
