The International Swaps and Derivatives Association Inc., or ISDA, has released French and Irish legal equivalents to the British dispute resolution mechanism, providing financial institutions a means to keep functioning under EU or European Economic Area member state law.
"Right now with the political situation with Brexit, it's unpredictable as to what the final outcome will be. This is part of the preparations that are necessary," ISDA Chief Executive Scott O'Malia told Reuters in an interview.
Anticipating the relegation of the U.K. law master agreement to third-country law after the U.K. leaves the bloc, the industry body devised French and Irish law master agreements — industry templates for swap derivative contracts — to simplify settlement of disputes with counterparties in the EU and EEA region.
The Irish and French laws were also chosen because they align with ISDA protocol for modification of multiple agreements between parties, the association said.