Blog
The ISDA 2016 Variation Margin Protocol – A Step Too Far?
Introduction On 16 August 2016, ISDA published the “2016 Variation Margin Protocol” (the “VM Protocol”), designed to assist counterparties in amending CSA documentation so as to comply with Working Group on Margin Requirements (WGMR) rules as implemented locally by: The US “Prudential Regulators”; The CFTC; The Financial Services Agency of Japan; and The Canadian Office […]
Subscribe to our blog
Insurance Brokers Avoid CASS RP…For Now
On 16 August 2016, the Financial Conduct Authority (FCA) published a statement yesterday to update firms on its October 2012 Consultation Paper 12/20: Review of the client money rules for insurance intermediaries. Despite the ongoing issues with CASS compliance, as highlighted by Towergate only last month, in light of: increased industry focus on protecting client […]
EU non-cleared margin rules “clarification” confusion cleared-up
The EC has rushed to publish an addendum correcting the most glaring error in its 28 July RTS on non-cleared margin rules. The RTS stated that the first implementation of IM in the EU would be 1 September 2017, a full year after all other countries who are following the BCBS/IOSCO timetable. The addendum clarifies […]
Multi-tool for bail-in amendments now available
On 1 August 2016, the Association for Financial Markets in Europe (AFME) published a full set of model clauses for the contractual recognition of bail-in under article 55 BRRD. The 55-page package follows the September 2015 release, which was then limited to one jurisdiction. The expanded package now includes: Generic version of model clauses for […]
EU non-cleared fog begins to clear
On 28 July 2016 the EC published a letter to the Joint Committee of the European Supervisory Authorities (ESAs), stating that it will endorse a revised text [1] of the RTS on risk mitigation techniques for non-cleared OTC derivatives Article 11(15) of EMIR. The market has been on tenterhooks since 9 June 2016 when the Commission announced that it would […]
ISDA`s flash public consultation on VM Protocol
On 19 July 2016, ISDA published the draft 2016 Variation Margin Protocol for public consultation. Comments must be submitted by Friday 29 July 2016. It is not in the habit of ISDA to hold a public consultation on its drafts – Protocols in particular are generally presented as a fait accompli. The initiative is to […]
EMIR DR OJ’d
The Delegated Regulation to add NOK, SEK and PLN IRS contracts to the clearing mandate under EMIR was published in the OJ on 20 July 2016. As usual, the Regulation comes into force 20 days after publication, therefore applying from 9 August 2016. Frontloading for Categories 1 and 2 will accordingly begin on 9 October 2016.
ESMA proposes Cat 3 clearing delay
ESMA has today published a consultation paper requesting responses to a proposal which seeks to provide additional time for market participants with limited volume to comply with the clearing mandate under EMIR. If approved, the proposal would delay the compliance date for Category 3 entities by two years. Category 3 comprises FCs and NFC + AIFs […]
BRRD Level II OJ’d
The Delegated Regulation (DR) supplementing the BRRD was published in the OJ on the 8 July 2016, having passed consideration by the Council and the Parliament, triggering its entry into force on 28 July 2016. The draft RTS was submitted to the EC by the EBA in December 2015, then adopted by the Commission under its […]
ISDA Regulatory Margin Self-Disclosure Letter: one easy step
On 30 June 2016, ISDA published the Regulatory Margin Self-Disclosure Letter to facilitate compliance with the regulations on margin requirements for uncleared derivatives in the following jurisdictions: Canada The European Union Japan Switzerland The United States The letter allows parties to confirm basic information about their respective status in each jurisdiction (e.g. FC, NFC+ or […]