The Federal Reserve Board's rule uses QFC in the same sense as section 210(c)(8)(D) of Title II of the Dodd-Frank Act1. The preamble to the rule explains that QFCs include derivatives, repurchase agreements, reverse repos, and securities lending and borrowing agreements2. Title II of the Dodd-Frank Act temporarily stops the counterparties of a failed company from terminating, netting or liquidating collateral under its QFCs because of its entry into resolution or similar grounds3.

QFC is a term in US rules. Definitions in other countries are not covered.

Notes

  1. 12 CFR 252.81, definition of "Qualified financial contract (QFC)". ↩

  2. Board of Governors of the Federal Reserve System, 82 Federal Register 42882 (September 12, 2017), "I. Introduction", "A. Background", "Qualified financial contracts, default rights, and financial stability." ↩

  3. The same Federal Register notice, "A. Background", text and notes 34 and 35 (12 U.S.C. 5390(c)(9), (c)(10)(B)(i)(I)). ↩