Contact: Katrina Cavalli, 212.313.1181, [email protected]
SIFMA Statement on the New ISDA Resolution Stay Protocol
Washington, DC, October 11, 2014 — SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on today’s announcement that 18 major global banks (G-18) have agreed to sign a new ISDA Resolution Stay Protocol:
“SIFMA supports the agreement between banks and regulators to delay termination of derivatives contracts in the event of resolution of a related troubled financial institution to better manage systemic risk. Both our sell-side and buy-side members have been highly engaged in this important industry initiative. Our Asset Management Group is particularly appreciative of the global regulators’ recognition of asset managers’ fiduciary duties to their clients in phasing in these requirements for end-users. This is one in a series of important steps taken by our industry to bring enhanced safety and soundness to the global financial system, and it illustrates the benefits of cross border consistency and coordination. Derivatives are a key risk management tool for businesses around the globe, and addressing the treatment of derivatives contracts in the event of bank failure is critical if we are to minimize the potential economic impact of any future crisis.”
