This Quick Start User’s Guide and Recommended Practices (the “Recommended Practices”) are intended to provide a step by step overview of the process of novating foreign exchange and currency option transactions under the ISDA Master FX Novation and Cancellation Protocol (the “FX Novation Protocol”), published by ISDA on March 25, 2011. In particular, these Recommended Practices are meant to focus attention upon the choices and variations which parties that have adhered to the FX Novation Protocol and are proposing to novate transactions may wish to consider.

These Recommended Practices provide for a concise overview of the various stages in the novation process set forth in the FX Novation Protocol. It is set up with a bullet point approach to provide for clear recommendations. Although parties to a novation are not obligated to conform to the Recommended Practices, Adhering Parties are encouraged to follow the guidelines set forth herein in order to support a standardization of the novation process.