It replaces the requirement for prior written consent from the third party in an assignment trade, replacing it with an exchange of electronic agreements. The protocol will apply to credit and interest rate derivatives.
The first novation protocol closed on December 1, 2005, with almost 2,000 signatories. The NPII is 'evergreen' as it will be open permanently.
The week in Risk.net, May 19-25 2017Receive this by email