The comment period for the second phase of the International Swaps and Derivatives Association (ISDA) 2009 Protocol for Resolution of Disputed Collateral Calls closed on August 7. The Protocol is designed to provide standardized timing and methods for the resolution of collateral valuation disputes among market participants. Under the Protocol, market participants would have a three-day time period, which could be extended by mutual agreement, in which to transfer undisputed amounts of collateral, identify the precise transactions giving rise to a dispute, consult informally on valuation methodologies and resolve the dispute either informally or by using the formal resolution procedures prescribed in the Protocol. The ISDA has not yet determined whether the Protocol will be published as an industry best practices guideline, a legally binding protocol or a stand-alone amendment which may be incorporated into ISDA agreements by mutual agreement. The ISDA intends to finalize the Protocol by the end of September.

A copy of the Protocol is available here.