On May 5, the International Swaps and Derivatives Association, Inc. (ISDA) launched the ISDA Resolution Stay Jurisdictional Modular Protocol (Protocol), which is designed to assist market participants in complying with new regulations governing the cross-border enforceability of stays on contractual termination rights. The Protocol was developed in reaction to new regulatory changes, such as a framework established by the Financial Stability Board, whereby various national regulators are requiring certain banks in their jurisdiction to obtain counterparty consent for statutory stays on early termination rights, regardless of the contract’s governing law. These changes are designed to reduce the uncertainty regarding the cross-border enforceability of such stays.
To assist market participants in complying with the requirements of various national regulators, the Protocol includes separate “Jurisdictional Modules” that contain the operative provisions necessary to adhere to a particular jurisdiction’s requirements. The Protocol is available to all market participants and ISDA anticipates launching additional Jurisdictional Modules in the future.
The Protocol is available here.