Novation protocol
A document published by ISDA that defines the market standard procedures for novating interest rate and credit derivative transactions. The protocol demands that the transferor (the stepping-out party) seeks the consent of the remaining party that it is seeking to transfer by novation one or several trades to a new party (the transferee). A transfer by novation requires the consent of the transferor, the transferee and the remaining party. See also 'consent equals confirmation'.