ISDA Close-out Seminar

CPE Credit Hours Available

Field of Study: Specialized Knowledge 

6.5 CPE Credits

CLE Credit Hours Available (New York)

Transitional and Non-Transitional

6.5 CLE Credits

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 continue its series of close-out seminars, in which participants will consider the close out of a hypothetical derivatives portfolio against a hypothetical global institution. Participation will be by firm and each participant is 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.

Program Knowledge Level: Intermediate  |  Delivery Method: Group Live
Prerequisites: None  |  Advanced Preparation: See below "COURSE REQUIREMENTS"

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.

• 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.

• For attendees who require CLE or CPE credit, you must be present by registering your attendance and departure on the attendance sheets at the registration desk. 

King & Wood Mallesons

Level 15, Governor Macquarie Tower

1 Farrer Place

Sydney NSW 2000