ISDA: Briefing Note for Member States of the European Union on implementation of Article 77(1) (Protection for financial collateral, set-off and netting agreements)

What constitutes “appropriate protection”?

Article 77(1) of the EU Bank Recovery and Resolution Directive (“BRRD”)1 requires Member States to ensure that there is “appropriate protection” for title transfer financial collateral arrangements and set-off and netting arrangements from:

– the transfer by a resolution authority of some, but not all, of the rights and liabilities that are protected under a title transfer financial collateral arrangement, a set-off arrangement or a netting arrangement (“protected rights and liabilities”) by exercise of a power contemplated, for example, by Article 63(1)(d) of the BRRD (a “partial property transfer power”)

– the modification or termination by a resolution authority of protected rights or liabilities by exercise of a power contemplated, for example, by Article 64(1)(f) of the BRRD (a “contractual modification power”)

The BRRD does not, however, provide any guidance as to what constitutes “appropriate protection” for this purpose.

This Briefing Note has been prepared by the International Swaps and Derivatives Association, Inc. (“ISDA”)2 to assist EU Member States in implementing this important creditor safeguard under the BRRD.

More of the briefing can be found here.

Related Posts

Previous Post
WSJ on repo: the news is still depressing
Next Post
New reports and articles on collateral for non-cleared derivatives; what are they saying? (Premium content)

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account