Flexibility of new stay protocol seen as draw for buy side

Dealer-by-dealer approach calms worries over fiduciary duty, lawyers say

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Lawyers think flexible approach goes far enough to secure broad uptake for new protocol

Lawyers say the International Swaps and Derivatives Association's new resolution stay protocol gives buy-siders enough flexibility for them to accept a loss of termination rights in a bank resolution.

Asset managers had fretted that they would breach their fiduciary duty to investors if they signed up to an agreement with banks that gave up rights to close their derivatives positions, repo and security lending ties if the bank got into trouble.

Isda's Jurisdictional Modular Protocol (JMP), publi

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