Why is there a limited adherence period for the 2002 Master Agreement Protocol?
There is a limited adherence period to provide Adhering Parties (as well as the Association) with a measure of certainty and finality. The limited adherence period should also encourage market participants to consider the issues addressed by the Protocol sooner rather than later, thereby assisting with the smooth and efficient functioning of the OTC derivatives markets. Also, because the Protocol is forward looking and allows an Adhering Party to address issues even in respect of 2002 Master Agreements that it enters into with other Adhering Parties at any time in the future, there is no need to keep the adherence period open indefinitely.
