Cleared Derivatives Execution Agreement Makes Debut

The ISDA/FIA Europe Cleared Derivatives Execution Agreement was published on 15 May 2014.  It facilitates principal-to-principal trading between an executing broker and its client of swaps that the parties have agreed are to be cleared by a CCP located outside of the US.

The agreement describes the process for submitting a trade to a CCP and details fall-back provisions in the event that a transaction is not accepted for clearing.  Overall, it is a welcome addition to the growing suite of clearing documentation in Europe.