On December 16, 2014, the Federal Reserve Board and the OCC issued an interim final rule designed to certify that the treatment of over-the-counter derivatives, eligible margin loans, and repo-style transactions under the two agencies' regulatory capital and liquidity coverage ratio rules would be unaffected by implementation of special resolution regimes in foreign jurisdictions or by the International Swaps and Derivatives Association's Stay Protocol. Additionally, the rule also guarantees that the lending limits of affected national banks and federal savings associations would be unchanged. Among other things, the interim final rule amends the definition of a "qualifying master netting agreement" since it currently does not recognize that default rights may be stayed where a master netting agreement is subject to limited stays under foreign special resolution regimes. The rule will be effective as of January 1, 2015 and applies to banking organizations other than state nonmember banks.
The interim final rule is available at: http://www.occ.gov/news-issuances/news-releases/2014/nr-ia-2014-169a.pdf
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