Buy side attacks Isda early termination protocol
Dealers last month agreed to sign a new protocol that would suspend swaps termination rights; buy-side firms will now be pushed to follow but many protest they have not had a say
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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