What is the EMIR Protocol?
EMIR specifies the minimum frequency at which the parties should reconcile portfolios. The Protocol provides a method for the identification, monitoring and resolution of disputes without overriding the existing dispute resolution methods that the parties may have agreed.
What are ISDA Protocols?
An ISDA protocol is a multilateral contractual amendment mechanism which has been used to address changes to ISDA standard contracts and other documentation since 1998. The fundamental benefit to an adhering party to a protocol is that it eliminates the necessity for costly and time-consuming bilateral negotiations.
What is EMIR portfolio reconciliation?
Portfolio reconciliation and dispute resolution The objective of portfolio reconciliation is to enable two counterparties (Financial and Non-Financial) to compare key trades terms for a given portfolio of derivative contracts and identify any discrepancies at an early stage.
What is NFC representation?
The first part of the representation included by the amendment allows a party to represent that it is a non-financial counterparty or an entity established outside the European Union that would constitute a non-financial counterparty if it were established in the European Union (NFC) .
How does ISDA work?
ISDA’s work in three key areas – reducing counterparty credit risk, increasing transparency, and improving the industry’s operational infrastructure – show the strong commitment of the Association toward its primary goals; to build robust, stable financial markets and a strong financial regulatory framework.
What is EMIR reporting requirements?
EMIR requires reporting of the transaction details for both types of derivatives trades – exchange traded derivatives (ETD) and OTC derivatives. For example, the derivative contracts traded on MTFs (multilateral trading facilities) are OTC derivatives in the context of EMIR.
What is the EMIR clearing threshold?
What is the Clearing Threshold? The Clearing Threshold is an amount set by class of OTC derivative contracts. It is set by regulatory technical standards and will be reviewed on a regular basis following public consultation.
What is the purpose of ISDA?
The International Swaps and Derivatives Association (ISDA) is a private trade organization whose members, mainly banks, transact in the OTC derivatives market. This association helps to improve the market for privately negotiated over-the-counter (OTC) derivatives by identifying and reducing risks in that market.
Why is ISDA required?
The ISDA Master Agreement is an internationally agreed document published by the International Swaps and Derivatives Association, Inc. (“ISDA”) which is used to provide certain legal and credit protection for parties who enter into over-the-counter or “OTC” derivatives transactions.