Step 1 – QFCs. The definition of QFC is very broad and includes all securities contracts, commodity contracts, futures, pension contracts, swap agreements and similar agreements that the FDIC defines as QFC by regulation, regulation or designation. The definition of a “securities contract” is in turn expansionary and includes, among other things, any contract to buy, sell or lend a security, a surety or a mortgage, or any option on any of the above terms; any captain`s agreement that provides for one of the types of transactions mentioned above; either a guarantee agreement or agreement or any other credit enhancement related to any of the types of transactions mentioned above. For example, in addition to the more obvious types of contracts such as ISDA master contracts and swap transactions, qfCs include, for example, insurance contracts or credit contracts that provide guarantees.  Subject to certain specific rules for companies, CFQs generally cover only QFCs that closed the covered business (1) after January 1, 2019 or (2) before January 1, 2019 if the covered company or affiliated company or an insurance affiliate is also a QFC company with the same person (or subsidiary) on January 1, 2019. , 2019. Accordingly, previous agreements must be respected when a counterparty or one of its consolidated related businesses intends to continue to do business with the insurance company or its associated companies. (i) ISDA 2018 U.S. Resolution Stay Protocol.  Compliance with the protocol automatically changes all QFCs included in the scope that have been concluded between the adhesive party and a classified unit (provided it has complied with it) on the date or before the compliance date.
 The protocol does not apply to an agreement on the scope of application reached after that compliance date, unless the handy qFC protocol contains the protocol as a reference. The protocol can only be included in a QFC QFC by reference if all parties have complied with the protocol (since the protocol was established under a security port included in the QFC residence rules, as described below). 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. If you are a company that uses derivatives, pension transactions and certain other types of financial contracts in your business, you may have received notice from the financial institutions with which you must act in relation to these contracts. You may have wondered why the financial institution sent you the message, what you need to do, if there are alternatives and, if there are options, the risks and benefits of some measures over others.
This warning allows you to respond with the help of your Dentons contact to meet both the financial institution`s regulatory requirements and the consideration of the burdens and benefits of the different ways you approach them.