COLLATERAL & THE CSA MASTER AGREEMENTS

Course Details

Audience: This course is well suited to in-house legal advisers; business, credit and collateral personnel. Agenda:​ What is collateral and why is it so important? The operational and credit aspects of the collateral agreements: how to calculate exposure; what collateral is required; thresholds; minimum transfer amounts; independent amounts; delivery amounts, return amounts and valuation percentages Over-collateralisation risk An overview of the 1995 English law CSA, 1994 NY law CSA, the English Law Deed and the Standard CSA, and how all these documents work in a South African context Consider out-and-out cession and cession in securitatem debiti under SA common law, and the Financial Markets Act and the tax implications Collateral management as a key focus of the regulatory requirements Variation Margin versus Initial Margin Regulatory requirements under EMIR, Dodd Frank and the FMA for margining cleared and uncleared derivatives Options re how to document your regulatory VM relationship The ISDA® Self-Disclosure letter Differences between the legacy CSAs and the regulatory VM CSA A brief overview of the IM CSA Includes a practical workshop giving delegates an opportunity to work through an example of a CSA schedule Outcomes: This is an introductory course to those who want to understand the operational aspects of collateral management and the legal framework for credit support documents. Delegates attending this course will gain a firm understanding of the Credit Support Annexures and the various negotiated sections in the CSA schedules, particularly the credit terms and thresholds. Delegates will gain a sound understanding of the New York law CSA, the English law CSA and the English Law Deed and when to use these agreements in a South African context. The legal intricacies of collateral arrangements under SA law will be covered in detail. A brief overview of the new regulatory requirements around collateral will be discussed including collateral in the cleared and uncleared environment, as well as a brief introduction to the new legal documents (VM and IM CSAs).