Swiss Banking Association Fmia Agreement

The purpose of the takeover agreement is to enable counterparties that have already concluded an ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol to meet FinfraG`s requirements. By entering into such a recapitalisation agreement, which, unlike the underlying protocol, is a bilateral agreement, the parties agree to include provisions relating to FinfraG portfolio coordination and dispute resolution and/or a waiver of confidentiality in order to report in EMIR Portfolio Reconciliation, Dispute Resolution and Disses Discure`s ISDA 2013. The main advantage of using such a reload agreement for counterparties that have already complied with an EMIR 2013 portfolio hedging protocol is to maintain compliance processes with FINK requirements. Counterparties may also consider entering into the FinfraG agreement published by the Swiss Banking Federation, which provides for a portfolio reconciliation procedure, a dispute resolution procedure and a confirmation exchange in accordance with FinfraG rules. In addition, and contrary to ISDA documentation, the FinfraG agreement provides for a self-classification letter that can be implemented by all counterparties for self-classification. However, we note that at this stage none of these agreements concern margin rules. Finally, some large companies have created ad hoc documentation to define FinfraG procedures that apply exclusively to their relationship with a given counterparty. This documentation is usually tailor-made. The following instruments will not fall within the scope on the basis of the finfraV project: the main isda documents for the implementation of the Margin rules are: (i) the ISDA Regulatory Regulatory Margin Self-Disclosure Letter, which is an instrument to help counterparties classify themselves and their counterparties; (ii) ISDA 2016 Variation Margin Procolto, allowing counterparties that modify their existing ISDA to implement margin requirements and (iii) parties may also, bilaterally, a CSA 2016 for Variation Margin (VM). The Swiss government has announced that it expects finfraG to enter into force on 1 January 2016, at the same time as its enforcement orders. However, due to the complexity of the commitments, finfraG foresees, for most commitments, several phasing-in periods of six to twelve months allowing counterparties to adapt their operations to the new regulatory environment.

In the context of the margin of variation requirements that have become mandatory in many jurisdictions around the world, ISDA has notably published a new CSA for Variation Margin (VM) of 2016, which complements its suite of Credit Support Documents and is adapted to the specific regulatory requirements relating to this variation margin. With regard to other risk reduction obligations, such as portfolio comparison, dispute resolution and disclosure, ISDA has published protocols to fulfil these obligations, including for EMIR. ISDA has just published further documents to enable the Swiss parties and their counterparts to implement FinfraG`s commitments. . . .