On September 01, 2017, the Federal Reserve Board (FBR) and the Federal Deposit Insurance Corporation (FDIC) finalized the amended rules for qualified financial contracts (QFC) of global systematically important banking organizations (GSIBs) and the US operations of non-US GSIBs.
The new amendment concentrates on qualified financial contracts of covered entities, which include:
• Swaps and other derivatives
• Repurchase and reverse repurchase agreements
• Securities lending and borrowing agreements

QFC generally gives a right to its parties to take certain actions against its counterparty if they default or fail to meet QFC’s contractual obligations. Common default rights include the right to suspend the performance of the non-defaulting party’s obligations, the right to terminate or accelerate the contract, the right to set off amounts owed between the parties, and the right to seize and liquidate the defaulting party’s collateral.

Time is running fast for GSIBs to get prepared. They are now required to maintain and update their inventory of QFCs end-of-day position, as on request this information needs to be submitted within 24 hours of time.