ISDA has responded to the Commission Communication on cross-border crisis management in the banking sector. Its main areas of concern include:
- safeguards in relation to netting, set-off, title transfer collateral arrangements, security arrangements and clearing and settlement systems;
- limiting any suspension of the right to terminate transactions with troubled institutions;
- resolving some uncertainties over set-off and netting in existing legislation; and
- strengthening close-out netting.
(Source: Letter: Commission Communication on Cross-Border Crisis Management in the Banking Sector)