(e) counterparties belonging to the same group must not exchange margins until their application for an exemption (“intragroup exemption”) of these contracts has been decided by the competent authorities. The exemption (both for IM and VM) for contracts that could be covered by the intragroup exemption was removed in the previous draft, but this was reinstated. As a result, the requirement to publish IM and VM now applies to these contracts, either according to the appropriate schedule for the phase at which it (or March 1, 2017, with respect to MVs) or July 4, 2017, with the latest date chosen; And it will also be useful for simple cash/non-cash collateral CSAs, where the Amend and Replicate method can be used without problems and there are limited product types that are added to a compensation package. In addition, in cases where the original CSA is not custom-made, there is only one CSA under a master agreement and there is likely to be agreement on the “method” to be applied between counterparties. B (for example, if it is recognized that older transactions remain under existing CSA), there are few restrictions on the use of the protocol. (v) the underlying ISDA master contract must be taken into account (e.g. B under the “New CSA” method, the basic currency is the termination currency under the accompanying master contract, but subject to a number of conditions, including a matching exercise). This publication serves your convenience and does not constitute legal advice. This publication is copyrighted.
© 2017 White – Case LLP The Clearstream Security Agreement – is a standardized master pledge agreement that sets security rates for warranties in Clearstream. As we reported in our September 2016 edition of the Delta report, the European Commission (EC) has been working on a gradual start to the margining rules for OVER-the-counter derivatives (the “Margin Rules”). Europe has not kept the timetable in line with the phase-in timetable agreed under the supranational IOSCO and contrasts with the United States, where the timetable for the Rules of the Committee on Futures Trade on Commodities (the CFTC) began on 1 September 2016 (such as the SS in Canada and Japan).