Follow me

RSS feed


2019   2018   2017   2016   2015   2014   2013   2012   2011   2010   2009   2008   2007   2006  

Welcome /  Blog /  2015-12-doc15 ISDA 2015 Universal Resolution Stay Protocol launched.

2015-12-doc15 ISDA 2015 Universal Resolution Stay Protocol launched.

The International Swaps and Derivatives Association (ISDA) published mid November 2015 the ISDA 2015 Universal Resolution Stay Protocol. The protocol will enable parties to amend the terms of their Protocol Covered Agreements to contractually recognize the cross-border application of special resolution regimes applicable to certain financial companies. Moreover, it will support the resolution of certain financial companies under the United States Bankruptcy Code. It is in fact a relaunch of the mid November 2014 Stay Protocol in which eighteen systemically important global banks agreed to delay by one day their right to exercise certain early termination and cross-default rights against one another in connection with certain over-the-counter transactions when their counterparty is in imminent collapse and their fate is being decided by a national regulator. The new Stay Protocol now covers 21 major global banks. The agreement was brokered by the ISDA in conjunction with the Financial Stability Board (FSB). Lacking a general overall statutory approach, the contractual approach to cross-border recognition under ISDA Master Agreements is an intermediate measure, until more comprehensive statutory regimes are adopted. I have criticized the direction the proposals chosen for these statutory regimes took (territorial in stead of regional or universal) and now, over a year later, I wonder how responsible stakeholders can justify why things move at a snail's pace, see The ISDA 2015 Universal Protocol replaces the 2014 Stay Protocol, but is nearly identical to it. A substantial change, however, is that the International Capital Market Association (ICMA), International Securities Lending Association (ISLA) and Securities Industry and Financial Markets Association (SIFMA), in consultation with ISDA, have developed an annex that expands the ISDA 2015 Universal Protocol to cover certain securities finance master agreements. There is no specific cut-off date to the ISDA 2015 Universal Protocol. ISDA has reserved the right to designate a cut-off date by giving 30 days’ notice on its site, see