ISDA 2014 Resolution Stay Protocol

Open from November 12, 2014 to November 2, 2015

**IMPORTANT UPDATE on the ISDA 2014 Resolution Stay Protocol:** This protocol is now closed and per the terms of the protocol agreement you are no longer able to submit an adherence letter for this protocol.  This Protocol has been replaced with the ISDA 2015 Universal Resolution Stay Protocol.

The International Swaps and Derivatives Association, Inc. (ISDA) has published the ISDA 2014 Resolution Stay Protocol (Protocol) which enables parties to amend the terms of their Protocol Covered Agreement  to contractually recognize the cross-border application of special resolution regimes applicable to certain financial companies and support the resolution of certain financial companies under the United States Bankruptcy Code.

The Protocol was developed by a working group of ISDA member institutions (including representatives from buy-side and sell-side institutions). It is a major component of a regulatory and industry initiative to address the too-big-to-fail issue by improving the effectiveness of cross-border resolution actions against a large bank. For more information on the background to the Protocol see link to the Background Note and the Press Release.

Please refer to the “Frequently Asked Questions” below for more information on the background and substance of the Protocol.

The Protocol is open to ISDA members and non-members. Parties will pay a one-time fee of $500 to ISDA to adhere to the Protocol. There is no cut-off date to this Protocol. ISDA does, however, reserve the right to designate a cut-off date by giving 30 days’ notice on this site.

Note that the Protocol is open to ISDA members and non-members, however, the first phase is expected to involve adherence by 18 major banks and certain of their subsidiaries and affiliates. They will adhere to the protocol on a voluntary basis during November 2014. As the need for adoption by other institutions will likely depend upon the scope of regulations yet to be issued, ISDA may publish amendments to the Protocol to reflect these regulations in due course. The mechanics of such amendments, in particular as they relate to parties that have already adhered to the Protocol, will be discussed at the relevant time.

NOTE THAT THE PROTOCOL IS CURRENTLY BEING AMENDED AND WILL BE RELAUNCHED IN NOVEMBER.  IT IS NOT EXPECTED THAT ANY PARTIES WILL ADHERE UNTIL THE NEW PROTOCOL IS LAUNCHED. ANY PARTY WISHING TO ADHERE SHOULD CONTACT PROTOCOLMANAGEMENT@ISDA.ORG BEFORE SUBMITTING AN ADHERENCE LETTER.

Pursuant to Section 1(b) of the ISDA 2014 Resolution Stay Protocol, ISDA is designating a Cut-off Date under this Protocol of November 2, 2015.  After this date, ISDA will not accept any further Adherence Letters to the ISDA 2014 Resolution Stay Protocol.  Existing adherence letters and amendments made by the terms of this Protocol are not impacted by this designation.

NOTE: Adherence letters will only be processed on business days and therefore parties should submit their adherence letters taking this into account.

CLICK HERE FOR A STEP BY STEP GUIDE ON HOW TO ADHERE TO AN ISDA PROTOCOL.