ISDA Protocols, EMU and Euro Materials and Guidebook
The EMU Protocol is ISDA's innovative approach to providing parties with a structure that permitted them to multilaterally amend existing transactions governed by an ISDA Master Agreement in light of the EMU. The structure, which is supported through ISDA's web page, allowed parties to effect adjustments on a collective basis instead of through time consuming and costly bilateral negotiations.
The ISDA EMU Guidebook is a 150-page guide outlining the basics of the changeover to the euro for money, FX, bond, equity and related derivatives transactions. The Guidebook explains the legal, documentation, accounting, tax and risk management issues raised by the EMU. In addition, the Guidebook contains all the key EMU reference materials a practitioner would need, a guide to the back office and systems impact of EMU, a glossary of euro terms and comprehensive references. The European Monetary Institute, predecessor to the European Central Bank, has kindly provided a foreword to the Guidebook.
The Provision is intended for use in existing and future ISDA Master Agreements where the parties wish to document their intention that European economic and monetary union ("EMU") should not affect the continuity of their contract. The provision enable parties to confirm in their ISDA Master Agreement that the EMU will not give either party the unilateral right to walk away from, or modify the terms of, any transaction governed by the Agreement.
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