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Jan 31, 2019 · The QFC Stay Rules are complex. Your Dentons contact can help you in navigate these rules and determine the best way to comply with them. Pub.L. 111–203, H.R. 4173. ↩. 12 U.S.C. §1821 (e) (8) (D). This statute further defines “securities contract,” “commodity contract,” “forward contract,” “repurchase agreement” and “swap ...
The US QFC Stay Rules are related to the application of US special resolution regimes and form part of a broader set of global regulations aimed at ending “too big to fail.”. The US QFC Stay Rules support this goal by requiring GSIBs and their in-scope QFC counterparties to exchange consents related to the suspension of certain contractual ...
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Under the US QFC Stay Rules, a "Covered QFC" which must be made rule-compliant is defined very broadly to cover a wide variety of financial transactions including without limitation; which have restrictions on the transfer of credit support provided by an affiliate to an insolvent G-SIB. The effective date of these rules is January 1, 2019.
Mar 8, 2019 · A covered QFC that is governed by U.S. law (or state law) and involves only U.S. parties is excluded from the Opt-In Requirement (provided that the covered QFC does not explicitly carve out the U.S. special resolution regimes from the laws governing the covered QFC), however, because in that case it is sufficiently clear that the stay-and ...
- Thomas C. Mitchell
Dec 20, 2018 · The ICMA note and these FAQs focus on how to address the QFC Stay Rules’ requirements where a manager or dealer is a “Covered Entity”1. The considerations may be different in respect of any issuer that is a Covered Entity. The ICMA note and these FAQs also do not address how QFCs entered into after 1 January 2019 might affect in-scope ...
An in-scope QFC is a QFC that explicitly: (1) Restricts the transfer of a QFC (or any interest or obligation in or under, or any property securing, the QFC) from a covered bank; or. (2) Provides one or more default rights with respect to a QFC that may be exercised against a covered bank. (e)Rules of construction.
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Nov 2, 2020 · On September 30, 2020, the Office of the Comptroller of the Currency (OCC) issued an order granting an exemption from the express recognition requirements of 12 CFR 47.4 for certain categories of qualified financial contracts (QFC) entered into by foreign subsidiaries of covered banks. 1 As provided in the order, "non-U.S. non-linked" contracts are exempted from the general requirement that a ...
