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ISDA joins Spain to Universal Stay Protocol

ISDA have today published the first Country Annexe to the 2015 Universal Stay Protocol, adding Spain to the list of Protocol-Eligible regimes. The protocol enables adherents to comply with the cross-border application of specified special resolution regimes (SRRs). Protocol Covered Agreements are amended to include a regime-imposed stay on resolution triggered contract termination. The 2015 Universal Stay Protocol largely replicates its 2014 predecessor, with an extension of reach to cover certain securities finance master agreements. Existing Identified Regimes are: France, Germany, Japan, Switzerland, the United Kingdom and the United States of America. Today’s publication of the Spanish Annexe allows adherents to include Spain via an opt-in process and payment of an annually-recurring $500 fee. The Universal Stay Protocol is primarily aimed at sell-side institutions, of which 217 have adhered to date. The buy-side is served by the ISDA Joint Modular Protocol, which offers a more “tailored” approach to jurisdiction-specific regulatory requirements.

While this, and future, additions are to be welcomed insofar as they extend this protocol’s utility, ISDA has nineteen open protocols, split over two adherence mechanisms. Each represents a convenient fix to a specific set contractual requirements, in total they represent a perpetual and growing challenge to basic contract management.

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