ISDA Stay Protocol

The ISDA Resolution Stay Protocol was originally created by the International Swaps and Derivatives Association (ISDA) in 2014 at the behest of regulators across the world in order to facilitate amendments to derivatives documentation among the largest banks in the world.  In November of 2015, the ISDA Universal Stay Protocol was expanded to cover a broader range of industry standard documents via the Securities Financing Transaction (SFT) Annex.  In particular, the SFT Annex, developed with the assistance of the International Securities Lending Association (ISLA), expanded the scope of the original 2014 stay protocol to include securities financing transactions documented under master agreements sponsored by SIFMA, ICMA and ISLA.

At its core, the ISDA Resolution Stay Protocol (now called the Universal Resolution Stay Protocol) is a voluntary contractual mechanism that allows parties to make certain uniform amendments to their contracts.  These amendments are intended to address the cross-border enforceability and recognition of resolution actions.  Although the ISDA Resolution Stay Protocol originally was intended as a voluntary mechanism for the largest banks, new regulations in many of the major jurisdictions are requiring amendments to be made to address the cross-border enforceability issues mentioned above.  To facilitate compliance with these new regulations, ISDA has published a Resolution Stay Jurisdictional Modular Protocol, along with modules for each jurisdiction (as regulations are finalized).

If beneficial owner lenders wish to continue to lend securities to (or engage in repo transactions with) certain counterparties, they will need to sign up to a Protocol or make equivalent amendments to their documentation.

Stay Protocol Background

Current Rules

RMA Documents

Comments or questions may be addressed to Fran Garritt, Director, Market Risk and Securities Lending or Paul Guinan, Manager, Market Risk and Securities Lending.