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BRRD II: Another day, another Protocol

Yesterday, ISDA launched a new module to the ISDA Resolution Stay Jurisdictional Modular Protocol (JMP)- the BRRD II Omnibus Module (“the Module”). Not to be confused with either Omnibus Directives, the new module acts to amend contracts to incorporate BRRD II Article 71a revisions. These revisions require third-country counterparty consent to statutory stays on early […]

UK-EU unequalled

UK Chancellor Rishi Sunak’s Mansion House speech yesterday delivered the final coup de grace headshot to any lingering hopes for EU-UK equivalence. “The UK has an abiding interest in a prosperous and productive Europe. We have deep shared values and a long history of cooperation. And we will strengthen those ties. At the same time, […]

BRRD- the other shoe drops

The BRRD includes broad contractual stay powers enabling EEA Regulators to temporarily:  suspend payment/delivery obligations, restrict the enforcement of security interests and suspend termination rights. Affected financial contracts comprise the majority of English law derivatives, repo and securities lending contracts as well as relevant master agreements. On 22 April 2021 the Commission adopted a delegated […]

LIBOR cessation date set

The FCA has today issued the official death knell for LIBOR. The announcement constitutes an index cessation event under the IBOR Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol for all 35 LIBOR settings. 5 March 2021 is therefore the date on which the fallback spread adjustment will be fixed. Publication of 26 LIBOR […]

The Exchange – DRS’s brand new podcast

Episode 1 is now live! We are pleased to announce that the first episode in our ongoing podcast series ‘DRS Exchange’ – is now live. The series overall explore ssome of the legal and regulatory issues affecting the financial markets – from changes in regulation to recent case law to new technologies and ways of […]

It’s Official

17 February 2021. Delegated Regulations further amending the EMIR Margin RTS and amending the three Clearing Obligation RTS have today been published in the OJ. They will both enter into force on the following day- 18 February 2021. Amendments to the Margin RTS Extension of equity options derogation until 4 Jan 2024 Extension of intragroup […]

Italian Swap Opera

Although confirming an earlier Audit Court judgement in respect of jurisdiction, the recent publication of a 17 November 2020 decision in respect of Morgan Stanley by the Italian Supreme Court (Court of Cassation), serves as a reminder that the status of derivatives under Italian law is still far from settled. This note briefly reviews the […]

Contractual “default” – it means what it says on the tin

Introduction One of the most important tasks of any commercial contract is to answer the question “how can it all go wrong?”  In other words, what do we mean when we talk about the ‘default’ of one or both of the parties?  In the recent case of ABC Electrification Limited and Network Rail Infrastructure Limited[1], […]

Fallbacks Protocol Effective

The IBOR Fallbacks Protocol is legally effective as of today. Following a permanent IBOR cessation, or an FCA determination that a LIBOR has “become” non-representative, fallbacks in the form of adjusted risk-free rates will apply to in-scope derivatives contracts. Clearly, the Protocol only applies to those who have adhered- 11902 to date. Purely in terms […]

ESMA confirms DTO to continue post-Brexit

ESMA has this morning released a public statement confirming that the EU Derivatives Trading Obligation (DTO) will continue to apply after Brexit transition. The DTO under Article 28 of MiFIR requires firms to transact certain derivatives (essentially the most liquid, standardised contracts) on an EU trading venue, or that of a third country already judged […]

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