ISDA 2016 Bail-in Art 55 BRRD Protocol (Dutch/French/German/Irish/Italian/Luxembourg/Spanish/UK entity-in-resolution version)

Open from July 14, 2016

The International Swaps and Derivatives Association, Inc. (ISDA) has published the ISDA 2016 Bail-in Article 55 BRRD Protocol (Dutch/French/German/Irish/Italian/Luxembourg/Spanish/UK entity-in-resolution version) (ISDA Bail-in Protocol).

The ISDA Bail-in Protocol offers market participants an efficient way to amend the terms of certain ISDA Master Agreements and certain other master agreements, framework agreements and give-up and execution agreements (as further described in the ISDA Bail-in Protocol) to reflect the requirements of Article 55 of the EU Bank Recovery and Resolution Directive (BRRD) as implemented in the relevant jurisdiction.

Article 55 of the BRRD requires in-scope entities to include a contractual term in agreements creating any relevant liability governed by a third country (i.e. non-EU or, if the implementation of Article 55 of the BRRD in the relevant jurisdiction extends to liabilities governed by non-EEA law, non-EEA) law whereby the creditor recognises that the liability may be subject to the exercise of write-down and conversion powers (“bail-in”) under the BRRD and agrees to be bound by any such bail-in, provided that such liability is not an excluded liability.

The ISDA Bail-in Protocol aims to assist in-scope (Dutch, French, German, Irish, Italian, Luxembourg, Spanish and UK) entities to comply with the requirement in relation to their ISDA Master Agreements and certain other agreements.

Please refer to the “Frequently Asked Questions” below for more information.

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