Buy side attacks Isda early termination protocol
Lawyers and funds allege lack of consultation in crucial too-big-to-fail fix
One buy-side lawyer calls it "absurd" and "insane". Another says her clients will "go ballistic" when they see the details.
Both are talking about the newly minted Isda Resolution Stay Protocol, which restricts the rights of derivatives users to immediately close out contracts when a stricken dealer is taken into resolution proceedings or - under some circumstances - when it files for bankruptcy in the US.
The protocol was drafted at the behest of global regulators by a working group of the
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