CPE Credit Hours Available
6.5 CPE Credits
CLE Credit Hours Available (New York)
Transitional and Non-Transitional
6.5 CLE Credits
COURSE OVERVIEW
The implementation of post-financial crisis regulatory reforms – in particular, new bank resolution regimes and the mandatory exchange of collateral – have made the process for terminating derivatives portfolios significantly more complex. The banking failures of 2023 (Signature Bank, SVB, Credit Suisse) brought these complexities into sharp focus for market participants. To help market participants prepare for a potential close out, ISDA published a Close-out Framework, an interactive digital reference tool offering high-level analysis of the default mechanics and collateral enforcement provisions in ISDA documentation, along with additional commentary on bank resolution legislation in the US and Europe.
ISDA will launch a new event series in 2025, in which participants will consider the close out of a hypothetical derivatives portfolio against a hypothetical global institution. Registration is per individual, but firms are strongly encouraged to provide a representative to attend from each of their legal, credit, risk, operations and recovery and resolution planning functions (as applicable), who will contribute to discussions on practical and technical issues.
ISDA will lead the exercises with support from legal counsel and The Brattle Group on the related non-legal aspects.
The series will be carefully curated and ISDA is consulting with anti-trust and litigation counsel accordingly. A Guide to Participants document will be circulated that will set out parameters and limitations to ensure the exercise is conducted appropriately.
ISDA will also provide official sector versions of the seminar pursuant to demand.
Summary of Agenda
The session is expected to cover high-level considerations relating to pre-default monitoring, contractual and operational issues that may be relevant to default and close out, the potential imposition of an intervening stay on termination rights and remedies, collateral enforcement and practical issues in determining a close-out amount.
COURSE REQUIREMENTS
Detailed materials for this course will be distributed electronically to all participating institutions prior to the date on which the institution will attend the course. Participants should plan to review these materials in advance of the course.
Venue Details
NEW YORK, JUNE 17
ISDA Conference Center
10 E 53rd St, 8th floor
New York, NY 10022