On 24 September 2013, ISDA and Markit issued a press release announcing the launch of the ISDA “Cross-Border Swaps Representation Letter for US Banks” (the “Representation Letter”) on ISDA Amend.  The Representation Letter is designed to assist market participants comply with the provisions of the “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap […]

On 16 September 2013, ISDA published its “Cross-Border Swaps Representation Letter for US Banks” (the “Representation Letter”).  The Representation Letter is designed to assist market participants comply with the provisions of the “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations” published by the CFTC on 26 July 2013.  This describes the circumstances […]

Introduction A further addition to the already long list of bilateral amendments to derivative documentation became available on 10 September 2013 when ISDA published its Dodd-Frank March 2013 Protocol (DFP2) to EMIR Top Up Agreement (the “Extension Agreement”) together with an Explanatory Memorandum. The Extension Agreement is a bilateral amendment which allows parties which have […]

Yesterday, the Macroeconomic Assessment Group on Derivatives (MAGD) issued its second report prophesying the (necessarily) macroeconomic effects of planned regulatory reforms. The MAGD was set up under the auspices of the ODCG and comprises financial and economic “modelling experts” from central banks and other authorities. The 79 page report came to the unsurprising conclusion that, […]

A quick reminder that the CFTC’s mandatory clearing requirement for interest rate swaps and credit default swaps when entered into by non-financial commercial end users (Category 3 Entities) will begin on 9 September 2013.  Many major businesses and most public companies are included within the definition of Category 3 Entities.  The Commission’s clearing requirement does […]

Following a request from ISDA and in the new spirit of cross-Atlantic amity, the CFTC has extended no action relief for portfolio reconciliation of uncleared swaps (regulation § 23.502) until 15 September 2013. Readers will recognise the date as coincident with the start of EMIR obligations with respect to portfolio reconciliation and dispute revisions. The […]

The WGMR[1] has told Risk magazine that their rules for non-centrally cleared derivatives will be published within weeks. A member of the working group said, “Publication is expected by the end of the month. A specific treatment [i.e. an exemption] for forex swaps and forwards is indeed likely”. Market participants have lobbied hard over the […]

On 19 August 2013 ISDA published its “Cross-Border Swaps Representation Letter”, designed to assist counterparties comply with regulations under Dodd-Frank which, in certain circumstances, assert CFTC jurisdiction over swap transactions that have a non-US element. The letter asks recipients to represent whether they are a “US Person”.  If not, they are asked to further represent […]

12th August 2013. The CFTC issued a press release, announcing the approved final rules to implement enhanced risk management standards for systemically important DCO’s (“SIDCO”). The rules are intended to cohere with the BIS-IOSCO Principles for Financial Market Infrastructures recommendations, enabling the FSB-assessed SIDCO’s to continue as Qualifying Central Counterparties under international capital regulations. The […]