- August 2012 Dodd- Frank Protocol/ March 2013 Dodd-Frank Protocol
CFTC’s External and Internal Business Conduct rules and standards.
- CFTC IM Segregation Right Notice
In November 2013, the CFTC published Regulation 23.701, implementing requirements for swap dealers and major swap participants to notify counterparties of their right to require segregation of margin (other than variation margin) for uncleared swap transactions.
The rule became effective on January 6, 2014. For market participants that became “new counterparties” of a swap dealer or major swap participant after that date (for example, by putting in place an ISDA Master Agreement to begin trading uncleared swaps), the relevant swap dealer or major swap participant must comply with the requirements by May 5, 2014. For market participants that were existing counterparties on or before January 6, 2014, the compliance date is November 3, 2014.
- Canadian Representation Letter #1
The Ontario Securities Commission (OSC), the Manitoba Securities Commission (MSC) and the Autorité des marchés financiers (AMF), respectively, published Rule 91-507 requiring “reporting counterparties” to report certain derivatives data to “designated” or “recognized” trade repositories with respect to transactions involving “local counterparties”. The OSC, MSC and AMF have also published companion policies. In these three jurisdictions, for trades involving a “clearing agency” or a Dealer, trade reporting begins on October 31, 2014 and, for trades that do not involve such entities, on June 30, 2015. The securities regulatory authorities in certain of the remaining provinces of Canada have indicated their intention to introduce substantially identical rules by way of a multi-lateral instrument. Canadian federally regulated financial institutions may become subject to similar federal or national rules, orders or directives.
It is anticipated that other rules and instruments to be published and finalized by Canadian Regulators with respect to Derivatives will include a substantially equivalent definition of “local counterparty” to that in the TR Rules.
This letter allows you to provide information needed to assess how Canadian Regulatory Requirements do or may apply to Transactions between counterparties.
- UK (PRA Rule) Jurisdictional Module to the ISDA Jurisdictional Modular Resolution Stay Protocol
This tool enables compliance with the Prudential Regulation Authority’s (UK PRA) final rule on contractual stays in financial contracts governed by third-country law (PRA 2015/82) (UK PRA Stay Rule). Entities subject to the UK PRA Stay Rule must amend “third-country law” financial arrangements with counterparties so that their counterparties agree to be bound by stays on termination rights under the UK Banking Act if such entities enter UK bank resolution proceedings.
- Cross-Border Representation – US/Non US Person
On July 26th 2013, the CFTC published an “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations” providing guidance as to when the CFTC will assert jurisdiction over swap transactions that have a non-U.S. element. This allows market participants to provide counterparties with status representations needed to determine whether compliance with various CFTC swap regulations is required by the Interpretive Guidance.
- EMIR Counterparty and Clearing Classification Tools
The EMIR Counterparty Classification Tool and the EMIR Clearing Classification Tool allows entities to communicate the classification status between counterparties to help ensure compliance with EMIR. By answering a series of questions, derivative counterparties can classify themselves according to the EMIR taxonomy for various purposes, including obligations on mitigation of risks associated with cleared and uncleared OTC derivatives.
- Australian Single-Sided Reporting Letter
ISDA Australian Single-Sided Reporting Letter allows certain market participants to take advantage of the Australian single-sided reporting regime for Phase 3 Entities. The letter allows market participants to provide counterparties with status representations that can be used to help determine whether single-sided reporting is applicable for those entities with total gross notional outstanding positions of less than A$5b (Phase 3 Entities), provided they engage in derivatives transactions with counterparties that are already required or agree to report.
- Australian Mandatory Clearing Classification Letter
The ISDA Australian Clearing Classification Letter allows counterparties to bilaterally communicate their status by answering a series of questions and enable counterparties to notify each other of their status for clearing requirements under Australia’s mandatory central clearing regime for over-the-counter derivatives. ISDA prepared the appendices in order to help counterparties provide classification-status information to determine the application of certain requirements under the ASIC Derivative Transaction Rules (Clearing) 2015. The letter and the appendices may be used by a named entity to meet its requirements under Rule 3.1.2 of the ASIC clearing rules.