Open from July 28, 2022
The Canadian Jurisdictional Module was created to allow market participants to comply with the Canada Deposit Insurance Corporation Eligible Financial Contracts By-law, SOR/2022-55 (the Canadian Regulation) regarding contractual stays in certain financial contracts that are governed by the law of a third country or to which at least one of the parties is neither an individual resident in Canada nor a “Canadian entity” (as such term is defined in section 2 of the Bank Act (Canada), S.C. 1991, c. 46).
Adhering Parties will be able to adhere to the Canadian Jurisdictional Module and identify themselves as either “Regulated Entities” that are subject to the Canadian Regulation or “Module Adhering Parties” that are adhering for the purpose of satisfying the regulatory requirements applicable to their counterparties under the Canadian Regulation.
Please refer to the “Frequently Asked Questions” below for more information.
The Canadian Jurisdictional Module is open to ISDA members and non-members. Parties will pay a one-time fee of $500 to ISDA for each adherence to the Canadian Jurisdictional Module. There is no cut-off date to the Canadian Jurisdictional Module. ISDA does, however, reserve the right to designate a cut-off date by giving 30 days’ notice on this.
ISDA has prepared this list of frequently asked questions to assist in your consideration of the CANADIAN JURISDICTIONAL MODULE to the ISDA RESOLUTION STAY JURISDICTIONAL MODULAR PROTOCOL (the ISDA Jurisdictional Modular Protocol).
THESE FREQUENTLY ASKED QUESTIONS DO NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE CANADIAN JURISDICTIONAL MODULE. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE CANADIAN JURISDICTIONAL MODULE. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION MAY BE PUT.
These FAQs address the following questions:
- What is the purpose of the Canadian Jurisdictional Module?
- How does adherence to the Canadian Jurisdictional Module and the ISDA Jurisdictional Modular Protocol work?
- How does the Canadian Jurisdictional Module relate to the Canadian Regulation?
- Why are certain terms in italics and quotation marks?
- What agreements are Covered Agreements under the Canadian Jurisdictional Module?
- What entities are Regulated Entities under the Canadian Jurisdictional Module?
- When does the Canadian Jurisdictional Module become effective?
- What are the compliance dates for the Canadian Regulation?
- How do I sign up to the Canadian Jurisdictional Module?
The ISDA Jurisdictional Modular Protocol is designed to facilitate market participants’ compliance with regulations regarding contractual stays in financial contracts governed by third-country law in different jurisdictions. As regulations are adopted in a jurisdiction, a “Jurisdictional Module” to the ISDA Jurisdictional Modular Protocol can be published that includes operational provisions based on the text of that regulation and aimed at enabling parties to comply with those requirements. A party can adhere to a particular Jurisdictional Module by submitting an Adherence Letter for such Jurisdictional Module. Each Jurisdictional Module is considered individually. For more information on the ISDA Jurisdictional Modular Protocol and adherence to the ISDA Jurisdictional Modular Protocol, please see the general FAQs for the ISDA Jurisdictional Modular Protocol.
The Canadian Jurisdictional Module was published as a Jurisdictional Module to the ISDA Jurisdictional Modular Protocol on 28 July 2022.
You can download the full FAQ here.