Financial Law Reform

Financial Law Reform covers a range of legal and legislative developments at global, regional and national level that affect trading in OTC derivatives. It is the ISDA forum that discusses and drafts ISDA submissions on matters ranging from laws on insolvency (netting, set-off, recovery and resolution) and property (collateral) to more general securities law matters as well as a wide range of private international law matters to various national, regional (eg EU) and global (eg UNIDROIT, UNCITRAL, Hague Conference on Private International Law) entities.

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DateTitle / DescriptionDocuments
September 28, 2017
Proposed moratoria under the BRRD and the impact on the Universal Stay Protocol
New moratoria powers under the Bank Recovery and Resolution Directive proposed by the European Commission could trigger opt-out rights for entities that have adhered to the ISDA 2015 Universal Resolution Stay Protocol. This paper considers the implications for European Union financial institutions.
A Step Backwards in Efforts to End Too Big To Fail FINAL (002).pdf
August 14, 2017
ISDA publishes paper on proposed expansion of BRRD moratoria powers
The European Commission published amendments to its Bank Recovery and Resolution Directive at the end of last year, but these amendments – which propose to introduce two new moratoria powers – will put European financial institutions at a severe competitive disadvantage globally, pose significant challenges to financial stability, and introduce new levels of uncertainty into the recovery and resolution process.
BRRD Position Paper Final.pdf
June 29, 2017
ISDA response to European Commission consultation on conflict of law rules for securities and claims
ISDA responds to the questionnaire as part of the European Commission Consultation Document on conflict of laws rules for third party effects of transactions in securities and claims. The Commission has proposed a number of conflict of law rules with relevance to derivatives transactions in the context of the EU Collateral Directive, Settlement Finality Directive, the Hague Securities Convention and the UNCITRAL Assignment of Receivables Convention.
ISDA response to EU ConDoc on Conflict of Laws.pdf
August 26, 2015
ISDA response to UK PRA’s consultation on contractual stays
ISDA has responded to a consultation paper from the UK Prudential Regulation Authority (PRA), which proposes a new rule for the PRA Rulebook requiring the contractual adoption of UK resolution stays in certain financial contracts (such as derivatives, repo/reverse repo or securities financing transactions) governed by the law of a jurisdiction outside the European Economic Area (EEA). The proposed rule would apply to UK banks, building societies and PRA-designated investment firms, as well as their qualifying parent undertakings in respect of financial contracts governed by the law of a non-EEA country.
ISDA Response - UK PRA Contract Stays.pdf
August 13, 2015
ISDA/AFME comments on the EBA consultation paper on the valuation of derivatives in bail-in
ISDA and the Association for Financial Markets in Europe have responded to a European Banking Authority questionnaire on how to treat derivatives transactions in a bail-in under the European Union bank recovery and resolution regime.
BRRD_Art49_EBA_ConDoc_ISDA_AFME_Response_Final.pdf
June 23, 2015
US Senate Foreign Relations Committee discusses the Hague Securities Convention
ISDA expresses its support for the ratification by the US of the 2006 Hague Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary (Hague Securities Convention).
Letter - Hague Convention 062315.pdf
June 17, 2015
BRRD Implementation Monitor
ISDA keeps track of the implementation status across all EU/EEA/EFTA member states.
BRRD_ISDA_Implementation_Monitor_v1_Jun15.pdf
March 27, 2015
Over-the-Counter Derivatives Regulation in Canada: Derivatives Trading Facilities
ISDA provides comments on the Canadian Consultation Report that sets out principles for developing a regulatory framework for centralized trading of certain derivatives.
Canadian_Consultation_Report-ISDA_Comment_Letter_final_3-27-15.pdf
February 5, 2015
ISDA response to EBA consultation on contractual recognition of bail-in in bank resolution
On February 5, ISDA responded to the European Banking Authority’s consultation paper on draft Regulatory Technical Standards on the contractual recognition of write-down and conversion powers under Article 55(3) of the Bank Recovery and Resolution Directive (BRRD) (EBA/CP/2014/33).
BRRD_RTS__Art55_ISDA__EBA_Response_Final.pdf
December 1, 2014
ISDA response to FSB consultation on the cross-border recognition of resolution actions
ISDA response to the FSB consultation launched 29 September 2014
ISDA Response - FSB Consultation on Cross-border recognition of resoluti....pdf