FMLG Financial Markets Lawyers Group FMLG FXC
 
 

EMU Protocol

The introduction of the euro in EMU countries in 1999 raised several issues with respect to transactions entered under the IFEMA, FEOMA and ICOM Master Agreements. The Financial Markets Lawyers Group co-sponsored a protocol to these FXC Master Agreements to confirm continuity of contracts and address other issues. The FMLG also obtained a legal opinion on the enforceability of the EMU Protocol. In 2000, the FMLG co-sponsored a bilateral amendment to address issues raised by Greece's adoption of the euro.

Leading up to the euro conversion, the FMLG also supported state legislative initiatives to ensure the continuity of U.S. contracts involving the currencies of participating EMU countries. The FMLG enlisted a legal opinion concluding the New York statute is constitutional and applies to all contracts governed by New York law.