Starting in 2019, U.S. systemically important banking organizations (“GSIBs”) and their subsidiaries worldwide, as well as U.S. subsidiaries, branches and agencies of foreign GSIB (“Covered Entities”) will be required to include new languages in their underwriting and similar agreements in order to recognize U.S. special resolution regimes. The “QFC Residence Rules” require covered companies to use a contractual residence language in some of their Qualified Financial Contracts (QFCs) in order to reduce the risk of destabilizing closures of the QFCs of the covered companies, which is a perceived obstacle to the orderly management of an MFI. 1. www.davispolk.com/files/2017-12-21_final_qfc_stay_rule_visual_memo.pdf 2 www.sifma.org/wp-content/uploads/2018/12/Application-of-QFC-Stay-Rules-to-Underwriting-Agreements.pdf 3 www.isda.org/protocol/isda-2018-us-resolution-stay-protocol/ 4. Scope of companies covered: determining the entities covered by the ISDA U.S. rules The Stay Protocol resolution is based on the ISDA 2015 Universal Resolution Stay Protocol, with some changes and additions, in order to facilitate compliance by a wide range of market players, including the buy-side. QFCs can include certain swap agreements, repo, securities lending transactions, futures, commodity contracts and many other types of frequently used financial contracts. Between the Fed, FDIC and OCC QFC Stay Rules, all U.S. . .

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