The New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958) is the foundational international treaty for commercial arbitration, ratified by over 170 states. It obliges signatory states to recognise and enforce arbitral awards rendered in other signatory states, conferring near-universal enforceability on arbitral decisions. In cross-border Franco-Swiss M&A, arbitration clauses derive their practical effectiveness from the New York Convention — which guarantees enforcement of Swiss or French arbitral awards in both jurisdictions and in third countries worldwide.

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Example: a post-closing dispute between a French buyer and Swiss seller is submitted to ICC arbitration in Geneva. The award orders the seller to pay CHF 2.3 million in warranty indemnity. On the basis of the New York Convention, the award is recognised and declared enforceable by the Geneva cantonal court in 6 weeks, then transmitted for enforcement by French bailiffs — without re-litigation on the merits.

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Hectelion structures arbitration clauses in cross-border transactions to ensure full benefit of the New York Convention, maximising enforceability of any future award.