Stay Early Termination Rights

Introduction On 3 May 2016 The International Swaps and Derivatives Association (ISDA) launched the “ISDA Resolution Stay Jurisdictional Modular Protocol” (the “JMP”).  The JMP is designed to enable market participants to comply with regulations in a number of jurisdictions which, broadly, require banks to obtain consent from their counterparties for the inclusion of statutory stays […]

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May 24th, 2016 by Simon Lafrance Tags:

On 3 May 2016, ISDA published the Resolution Stay Jurisdictional Modular Protocol, following the release of the Universal Resolution Stay Protocol in 2015 and the Resolution Protocol in 2014 – jointly supported by the Financial Stability Board (“FSB”) to uphold in a cross-border context the stay of early termination rights and related rights against important financial […]

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On 13 November the PRA published its policy statement and supervisory statement containing final rules requiring contractual stays in financial contracts governed by third country law (see this blog post for more detail).  The policy statement requires firms to amend “financial arrangements” entered into, or materially amended, after the relevant effective dates.[1] Whilst the PRA […]

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On 13 November 2015 the PRA published a Policy Statement containing the final rules for contractual stays in financial contracts governed by third-country law. The rules are the offspring of Consultation paper CP 19/15; their intention is to suspend the 3rd country termination and close-out rights of counterparties to a UK entity that has entered […]

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On 12 November 2015, ISDA relaunched the ISDA 2014 Resolution Stay Protocol (now called the “ISDA 2015 Universal Resolution Stay Protocol”).  Twenty-one major banks have signed the 2015 protocol at launch. Both the 2014 protocol and the 2015 protocol seek to address the question of “too big to fail”.  Specifically, they look to tackle the […]

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On 3 November 2015, the Financial Stability Board (FSB) published a consultation paper on “Developing Effective Resolution Strategies and Plans for Systemically Important Insurers”. The consultation paper develops themes first documented in the FSB’s “Key Attributes of Effective Resolution Regimes for Financial Institutions” (the “Key Attributes”).  Amongst other things, it discusses the way in which […]

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On 26 August 2015, ISDA announced that the 2014 Stay Protocol is to undergo revisions. Although it remains open, it is not expected that any market participant would adhere at this time. On the same day, in its comment to the PRA Consultation Paper on contractual stays in financial contracts governed by third-country law, ISDA […]

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Introduction On 23 June 2015, the Monetary Authority of Singapore (MAS) published its “Proposed Enhancements to Resolution Regime for Financial Institutions in Singapore”.  With the consultation period closing on 22 July 2015, the consultation paper seeks rapid feedback on a number of issues affecting firms in Singapore which have been notified as being systemically important […]

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Introduction On 26 May 2015, the Prudential Regulation Authority (PRA) published Consultation Paper CP 19/15, “Contractual stays in financial contracts governed by third-country law”.  The consultation period closes on 26 August 2015 and seeks comment on two aspects of current regulation which impact on portfolios of trading documentation – contractual stays and data mining. Contractual […]

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On 12 November 2014, ISDA officially published the Resolution Stay Protocol. The main purpose of the Protocol is to suspend early termination rights in the event a party or certain of its related entities (e.g. parent or affiliates) become subject to resolution or U.S. insolvency proceedings. The 2014 Resolution Stay Protocol contrasts with other protocols, […]

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