LEGAL AGREEMENTS FOR CENTRAL CLEARING

Course Details

Audience: This course suits people in the legal and compliance teams as well as the collateral teams who need to understand the documentation required to allow central clearing. ​ Agenda: The course will focus on the legal agreements that will be required to document the various clearing relationships: between two clearing members, between a client and a clearing member (client clearing), and between a client of a client and a clearing member (indirect client clearing). Background to clearing Clearing requirements under EMIR, Dodd Frank and Financial Markets Act regulations The three different clearing structures will be discussed in detail: (i) clearing between two clearing members (ii) clearing between a clearing member and a client (client clearing) – covering both agency and principal models (iii) clearing with a client of a client’s clearing member (indirect clearing) The documentation required for each of the three structures An explanation of the netting sets and what can be netted An overview of the standard documentation used for a clearing relationship Clause-by-clause through the ISDA®/FIA Cleared Derivatives Execution Agreement Clause-by-clause through the ISDA®/FIA Client Cleared OTC Derivatives Addendum Default events in the different documents used for clearing Collateral provisions in the clearing documents Segregation models and how collateral is held The Addendum Annex Protecting collateral and the models (Security model, Tri-party Custody and Contractual model) Confirmations for clearing The ISDA® clearing opinions ​ Outcomes: Delegates will gain detailed insight into the various central clearing documents.