Alternatively, parties to a QFC may comply with QFC`s residence rules by including a bilateral change linking only those parties to their own CFQs. To this end, ISDA has prepared models that can be used by companies subject to the QFC residence rules and their counterparts (including you) to meet the requirements of the QFC residence rules for bilateral modifications. These forms are also available under isda.org. It is not possible to comply with the QFC residence rules by bilaterally including the terms of the ISDA US Stay Protocol, unless all parties to a Scope QFC member have been ancestral in the ISDA Universal Stay Protocol and other agreements. In accordance with the 2018 protocol and the final rules, the restriction on the use of cross-fee on affiliated credit providers ends after the end of the stay period (i.e. the longer working day and 48 hours) provided that certain conditions that differ between the 2018 protocol and the final rules are met. The 2018 protocol is generally more specific in its requirements, including, for example, the bankruptcy court`s obligation to decide whether the length of stay is extended. On the other hand, the final rules are a little more general. The practical effect for end-users is that there may be more room to extend the length of stay under a bilateral agreement in accordance with the final rules than the 2018 protocol provides.
The longer the length of the stay, the more limited the end user is by the exercise of certain cross-rights. 1 The Federal Reserve Reserve Board of Governors, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), and the Federal Reserve and FDIC, the “U.S. Regulators”). 2 Federal Reserve Final Rules: Restrictions on eligible financial contracts by systemically important U.S. banking organizations and the U.S. operations of systemically important foreign banking organizations; revisions to the definition of the Master Netting Agreement qualified and related Def initions, 82 FR 42882 (November 13, 2017), available under www.federalregister.gov/d/2017-19053; Final FDIC rules: restrictions on eligible financial contracts of certain institutions subject to FDIC supervision; revision of the definition of the Qualified Master Compensation Agreement and related definitions, 82 FR 50228 (30 October 2017), available under w ww.federalregister.gov/d/2017-21951; restrictions on eligible financial contracts of certain FDIC-monitored institutions; revisions to the definition of the qualified “master netting” agreement and the definition, 82 FR 61443 (28 December 2017), available under www.federalregister.gov/d/2017-27971; OCC Final Rules: Mandatory Contractual Stay Requirements for Qualified Financial Contracts, 82 FR 56630 (November 29, 2017), available under www.federalregister.gov/d/2017-25529.