The agreement on amending the proposal is a very useful document that focuses on the issues that counterparties must consider in this area. It allows the parties to specify responsibilities for establishing and agreeing confirmations, facilitates positive and negative confirmations, and proposes alternative formulas depending on whether the violations must be late events, termination events or other consequences. The International Swaps and Derivatives Association, Inc. (ISDA) issued its EMIR Representation Protocol (NFC) in March 2013 and an agreement to change the confirmation period. The March 2013 ISDA-NFC Representation Protocol is expected to allow swap participants to simultaneously amend several key ISDA contracts to facilitate compliance with certain requirements of Regulation (EU) 648/2012 for OTC derivatives, central counterparties and central repositories (EMIR) and technical regulatory standards adopted under this Regulation. The documents are accompanied by a list of the parties on the minutes, the FAQs on the minutes, the explanatory note to be confirmed in due course. Prior to publication, ISDA released a draft amending agreement to assist counterparties in ISDA management agreements to comply with the technical standards of the EMIR Risk Mitigation Techniques Regulation (the “RISK Reduction STRATEGY”), which aims to issue timely confirmations of unauthorized OTC derivatives. Your email address will not be published. Mandatory fields are checked – You can use these HTML tags and attributes:
The document is currently in pre-release version, but he hopes it will be completed at the end of February/early March.
As risk reduction is expected to come into effect in mid-March, this will unfortunately not give market participants time to comply with the requirements. So it would be wise to think about these issues now.