Protocol loyalty is done on a group of business basis and will automatically change all QFCs (including Legacy QFCs) with all adhesive GSIBs around QFC rules. The protocol is therefore a «one-stop shop» for modifying all the QFCs of a group of companies with all GSIBs. The protocol also contains certain «partisan» provisions, which are not strictly authorized by the Stay Regulations resolution, to promote fidelity to a wide range of protocols. However, there are situations in which a specific counterparty wishes to limit and control the QF that is amended to include the provisions of the QFC. Counsel`s advice is strongly encouraged in defining the approach to be followed. The Dodd-Frank Wall Street Reform and Consumer Protection Act1, commonly known as the Dodd-Frank, defines a very broad QFC. The definition includes all securities contracts, commodity contracts, futures, retirement contracts, swap agreements and similar agreements that the Federal Deposit Insurance Corporation (FDIC) establishes as eligible financial contracts by order, settlement or settlement or order2. The CFQs that are subject to the QFC residence rules discussed below are those that contain certain provisions defined by the U.S. bank supervisory authorities, which are or could be detrimental to the orderly resolution of a GSIB. These are called «in-Scope QFCs» and are the driving force behind the transmission of communication in relation to the communication of your financial institution.

The new rules required that the major U.S. banking organizations or GSIB, as designated by the Basel Committee on Banking Supervision and the Financial Stability Board, are subsidiaries of US GSIBs (including public and non-member banks and national savings bank associations and most of their subsidiaries), national banks or federal savings bank associations holding more than $700 billion , and non-U.S. subsidiaries, branches or agencies of GSI (cumulative covered companies)2 modifying certain types of financial contracts, including securities contracts, swaps and other types of derivatives, pension and pension transactions and securities lending contracts (eligible financial contracts or QFC) to include limiting provisions, in certain circumstances , the termination rights of their counterparties and other default rights and allowing, in certain circumstances, the granting of these QFCs or related credit financing agreements.