2.1.6.10 Close-out Amount Protocol

Mallesons Stephen Jaques has issued a letter of advice on the 2009 ISDA Close-out Amount Protocol published by ISDA.

The primary function of the Protocol is to replace the concepts of "Market Quotation" and "Loss" in the terms of certain specified existing 1992 ISDA Master Agreements with the concept of "Close-out Amount" under the 2002 ISDA Master Agreement.

AFMA makes no recommendation as to whether or not parties should adhere to the Protocol.  However, subject to any particular commercial and legal reasons particular to the parties, AFMA and its Documentation Committee see no valid reason why parties to a 1992 ISDA Master Agreement should not replace the concepts of "Market Quotation" and "Loss" in such agreement with the concept of "Close-out Amount" under the 2002 ISDA Master Agreement.


Last Update Date 29 Jun 2011