Isda has co-ordinated a cross-border pact to waive rights to close contracts
A group of 18 major global banks have agreed to waive rights
to terminate contracts with struggling counterparties in a
landmark deal for the industry.
Following negotiations led by the International Swaps and
Derivatives Association and pressure from international
regulators, the banks have agreed a new protocol that will
impose a stay on cross-default and early termination rights
within the standard Isda agreement.
The new protocol is intended to give regulators time to
facilitate an orderly resolution of a troubled bank and prevent
counterparties from exacerbating the situation by terminating
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