ISDA Publishes Bail-in Article 55 BRRD Protocol
NEW YORK, July 14, 2016 – The International Swaps and Derivatives Association, Inc. (ISDA) has today announced the launch of a new Protocol to help market participants meet a European Union (EU) Bank Recovery and Resolution Directive (BRRD) requirement that applies to certain European entities.
The ISDA 2016 Bail-in Article 55 BRRD Protocol will allow Dutch, French, German, Irish, Italian, Luxembourg, Spanish and UK entities to meet the requirements of Article 55 of BRRD. Article 55 obliges in-scope entities to include a contractual term in agreements creating any relevant liability and governed by the law of a third country to ensure their creditors agree to recognize any bail-in of those liabilities. Article 55 and related technical standards set out the detail and terms of what is required.
“Article 55 will require market participants to make important changes to their outstanding contracts, and the ISDA Bail-in Protocol will enable those changes to be made quickly and efficiently to ISDA Master Agreements and certain other contracts. This is the latest in a series of ISDA initiatives to help market participants comply with new regulations intended to prevent banks from becoming too big to fail,” said Katherine Darras, ISDA’s General Counsel.
The EU BRRD came into force on July 2, 2014 and was required to be implemented in member states by January 1, 2015. The bail-in tool was required to be implemented from January 1, 2016. BRRD provides EU authorities with a variety of tools to deal with failing banks in Europe, including the ability to bail in certain liabilities. Regulatory technical standards on Article 55 were published in the Official Journal of the EU on July 8. They are due to come into force on July 28.
The Protocol is available on ISDA’s website. Click here to read frequently asked questions on Article 55.
Documents (1) for ISDA Publishes Bail-in Article 55 BRRD Protocol
Latest
Joint Response to ETS Review
On November 2, ISDA and the Association for Financial Markets in Europe submitted a joint statement on the European Commission’s call for feedback on the review of the EU Emissions Trading System (ETS). The response highlights the importance of a...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
ISDA Publishes ISDA SIMM® Methodology, Version 2.9+2606
Following the 2026 primary calibration exercise, ISDA is pleased to publish ISDA SIMM® version 2.9+2606. This version incorporates updates arising from the recalibration of the model using historical data up to and including 30 June 2026. The ISDA SIMM methodology...
Moving Regulatory Reporting up a Gear with AI
The aim of derivatives regulatory reporting is to improve transparency so regulators can monitor market activity and identify emerging risks. Although reporting rules and subsequent updates have resulted in improvements, they haven’t achieved fully consistent outcomes, leading to implementation and...