Phil Lookadoo, Partner at Haynes and Boone, LLP and IECA Board member, takes viewers through the user-friendly steps companies will take when using the new IECA Bilateral Amendment to amend their existing Qualified Financial Contracts (QFCs) with GSIB banking organizations. As of January 1, 2020, if a GSIB has not conformed (i.e., amended) its existing QFCs with a counterparty to comply with the U.S. Bank Regulators’ QFC Stay Rules, then the GSIB is prohibited by the regulators from entering into any new trade on or after January 1 with that counterparty.
The IECA Bilateral Amendment, itself a customized version of the ISDA® Bilateral Amendment, can easily be used, in lieu of the ISDA® 2018 US Resolution Stay Protocol or the ISDA® Bilateral Amendment, to amend a company’s existing ISDA® Master Agreements, EEI® Master Agreements, NAESB® Base Contracts, crude and refined product GTCs, and other QFCs with GSIB counterparties. Following a quick walk-through of a user’s logistical steps and a brief discussion of the helpful resources found in the QFC User’s Guide, Phil answered viewers’ questions, including the three reasons why an energy company should use the IECA Bilateral Amendment instead of the ISDA® Bilateral Amendment or the ISDA® 2018 Protocol. View all of these documents in the IECA Resource Library.