The Board of Governors of the Federal Reserve System proposed a rule that would require US global systemically important banking institutions to amend their contracts for certain common financial transactions to preclude the immediate termination of such contracts if a firm enters bankruptcy or a resolution process. Relevant contracts – termed “qualified financial contracts” – that would have to be amended include those used for derivatives, securities lending and short time financing such as repurchase agreements.

Stefan Ingves has spoken on the Basel Committee’s priorities for the next year. He focused on:

Twenty-one major global banks have already signed a relaunched stay protocol developed by the International Swap Dealers Association and other leading industry organizations in coordination with the Financial Stability Board. The purpose of the protocol is to help ensure the orderly resolution of a troubled bank by having firms voluntarily agree to abide by foreign resolution regimes in connection with cross-border transactions. A prior protocol was signed by 18 major banks in November 2014. The relaunched protocol increases the types of covered financial contracts.

On Thursday 12th November 2015, the International Swaps and Derivatives Association (ISDA) published the new Resolution Stay Universal Dealer Protocol that updates and extends the 2014 Resolution Stay Protocol to also cover Repo and Securities Lending Transactions.

A SUMMARY OF MAJOR DEVELOPMENTS IN KEY AREAS GENERAL COUNSEL UPDATE 27 February 2014 LEGAL GUIDE EDITION 37

Hogan Lovells Corporate Insurance Newsletter June 2014 UK  PRA publishes PS5/14: PRA Rulebook  PRA publishes statement of policy on the financial stability information power  The PRA’s approach document to insurance supervision updated  PRA publishes SS7/14: Reports by skilled persons  PRA publishes statement of policy on the use of PRA powers to address serious failings in the culture of firms  PRA publishes its annual report and accounts 2014  FCA publishes a market study into retirement income: revised terms of reference  FCA publishes FG14/6 - Annuity comparison websites: financ

This past Saturday, October 11, 2014, marked an important day in the too-big-too-fail regulatory and industry initiative. The International Swaps and Derivatives Association, Inc. (ISDA) announced on Saturday that 18 major global banks (G-18) have agreed to sign a new ISDA Resolution Stay Protocol, developed in coordination with the Financial Stability Board, to support cross-border resolution and reduce systemic risk.

 FSA has set out its standards for “key attributes” of effective resolution regimes. The standards require each jurisdiction to:

Government bonds were long considered a safe investment that offered the potential for high returns. However, after Argentina announced in 2002 that it would no longer service its bond debt and after Greece restructured its sovereign debt in March and December 2012, the question arises as to what investors can do to avoid the significant losses of capital (up to 70% in case of Argentina and over 80% in case of Greece) which almost always accompany sovereign debt restructurings.

The rapid evolution of a robust secondary market for claims against the three largest failed Icelandic banks provides a powerful example of the prompt adaptation of an existing secondary-market legal framework -- originally developed in the US and Europe -- to a complex and novel bankruptcy regime and trading environment.