Several large banks must amend contracts involving derivatives, securities lending and short-term funding transactions such as repurchase agreements to prevent their immediate cancellation or termination if the bank enters bankruptcy or a resolution process.

The Federal Reserve Board recently adopted this new rule in an effort to enhance financial stability largely by preventing a run on a bank.

The rule applies to eight global systemically important banks including JPMorgan Chase, Goldman Sachs and Citigroup.

Not only does the rule require banks to amend qualified financial contracts to prevent immediate cancellations, but it also prohibits large banks from exercising default rights that could spread its bankruptcy to an institution’s “solvent affiliates.”

“The final rule will reduce the threat that a disorderly unraveling of QFCs (qualified financial contracts) would pose to our financial system and the broader economy,” Fed Gov. Jerome H. Powell said in a statement.

According to the Fed, given the large volume of qualified financial contracts a large bank has, the mass termination of these contracts during financial distress or bankruptcy may lead to the failure of an affiliate, spark asset fire sales and/or transmit financial distress across the U.S. financial system.

“The financial crisis showed that when a large financial institution gets into trouble, its failure can destabilize other firms and the broader financial system. One reason this might happen is that the very largest banks are interconnected through substantial volumes of financial contracts,” Federal Reserve Chairwoman Janet Yellen said in a statement. “This requirement will help manage the risk to the financial system when a GSIB (global systemically important bank) fails, and will thus strengthen the resiliency of the financial system as a whole.”

The rule was initially proposed in May 2016 and is set to go into effect on Jan. 1, 2019.