New ISDA Resolution Stay Protocol

On the 11th October ISDA announced that a number of major banks will sign a protocol to adopt the new approach to a default.

Regulators have been seeking ISDA to include a stay in their rights under the ISDA Master Agreement to swiftly close-out trades in a counterparty default event. This stay provides the regulators the option to step-in should a default occur and have time to rescue a failing organisation.