ISDA launches new jurisdictional protocol aid
17 May 2016 New York
Image: Shutterstock
The International Swaps and Derivatives Association (ISDA) has launched the ISDA Resolution Stay Jurisdictional Modular Protocol (JMP) to help market participants adhere to national stay regulations.
The ISDA JMP is a standalone protocol that aims to allow for more consistent compliance with regional regulation by offering participants a generic script that can be amended to fit the terms of their protocol covered agreements.
The association explained that as some entities are required to obtain contractual recognition from their counterparties of the application of any relevant stays or overrides of termination rights, a template protocol should allow for more consistency across the market.
The service is open to both ISDA members and non-members and users must pay a one-time fee of $500 for each jurisdictional module they choose to adhere to
ISDA published the 2015 Universal Resolution Stay Protocol last year. Its open to all participants, but the association said it expects buy-side entities will prefer to adhere to the new ISDA JMP.
The ISDA Resolution Stay Protocol was first produced in 2014 on the request of the Financial Stability Board (FSB) in order to facilitate amendments to derivatives documentation among 17 of the what the FSB considered global systemically important banks.
The 2015 version included an annex incorporating securities financing transactions documented under master agreements sponsored by the International Capital Market Association, the Securities Industry and Financial Markets Association and the International Securities Lending Association.
The ISDA JMP is a standalone protocol that aims to allow for more consistent compliance with regional regulation by offering participants a generic script that can be amended to fit the terms of their protocol covered agreements.
The association explained that as some entities are required to obtain contractual recognition from their counterparties of the application of any relevant stays or overrides of termination rights, a template protocol should allow for more consistency across the market.
The service is open to both ISDA members and non-members and users must pay a one-time fee of $500 for each jurisdictional module they choose to adhere to
ISDA published the 2015 Universal Resolution Stay Protocol last year. Its open to all participants, but the association said it expects buy-side entities will prefer to adhere to the new ISDA JMP.
The ISDA Resolution Stay Protocol was first produced in 2014 on the request of the Financial Stability Board (FSB) in order to facilitate amendments to derivatives documentation among 17 of the what the FSB considered global systemically important banks.
The 2015 version included an annex incorporating securities financing transactions documented under master agreements sponsored by the International Capital Market Association, the Securities Industry and Financial Markets Association and the International Securities Lending Association.
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