The Clear Derivatives Execution Agreement is a model for market participants to use clear swaps when negotiating execution agreements with counterparties on the swaps to be deleted. The memorandum, as well as the attached memorandum, contains important information on the use of the Cleared Derivatives Execution Agreement, a brief description of the intent of each section of the Cleared Derivatives Execution Agreement, unique for carrying out a cleared swap transaction, and a comparison of the execution procedures. If an acceptance of a derivative transaction is accepted by the relevant clearing body, each part A and Part B are considered separate offset derivatives under the applicable agreement that each has with its respective countervailing member (unless Part A and/or Part B are already countervailing members of the compensation organization concerned) and no longer has rights or obligations to the other with respect to the derivatives transaction in question. This webinar discussed the recently released FIA-ISDA Cleared Derivatives Execution Agreement – a model that can be used by participants in clear swap markets to negotiate enforcement-related agreements with over-the-counter derivatives counterparties that must be removed. This webiner provides an overview of the document and its use, takes a closer look at the specific provisions and presents optional annexes. The 2017 ISDA/FIA Cleared Derivatives Execution Agreement is a model for market participants to use in negotiating performance agreements with counterparties on swaps that need to be approved. The document is intended to facilitate entry into derivatives transactions and to clear these transactions with one or more central counterparties outside the United States and can be used in conjunction with the addendum isda/FIA client clearing. This document has been updated to reflect the new deadlines provided by MIFID II for the transmission of information on derivatives transactions subject to bilateral consideration. In addition to this document, a black line comparison with the 2016 version is published. The Cleared Derivatives Execution Agreement is a model for clear swap market participants to be used in the negotiation of performance agreements with swap counterparties that will be settled through the U.S. Futures Commission. The memorandum explains the changes between version 1 and version 1.1 The recently published FIA-ISDA clear derivatives execution agreement is the industry`s first attempt to regulate relations between parties contracting trades for central clearing.
Michael Beaton, Managing Director of Documentation Risk Solutions, explains the structure of this new legal agreement.