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Isda Delegated Reporting Agreement

Posted by Josh On April - 10 - 2021

On 13 January 2014, ISDA and FOA published their EMIR Information Delegation Agreement jointly developed by ISDA/FOA (the “Agreement”) to help market participants meet their obligations under Article 9 of the EMIR Regulation by providing a bilateral model form contract that can be used to document delegated reporting agreements. The notification requirement is the latest in a series of obligations imposed on derivatives counterparties in Europe under the European Market Infrastructure Regulation (EMIR), which came into force in August 2012 in response to commitments by the European Union to subject the derivatives market to stronger regulation. Although the AEMF has sent a letter to the European Commission, indicating to the Commission that the start date of the report on exchange-traded derivative contracts should be postponed by one year to allow operators to obtain additional guidelines for notification of such contracts, the Commission did not accept such a delay and CNN and CNN should be required to comply with reporting obligations for both OTC and Exchange derivatives on February 12, 2014. Below are a number of important points to consider in the revision and completion of the GDR. Many of these issues will also be relevant to parties negotiating tailored forms of reporting with a distributor. The Master Regulatory Reporting Agreement (MRRA) gives market participants the opportunity to use a single model to help them manage regulatory obligations and provide reporting services under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR). The additional time limits apply to the notification of certain derivative contracts concluded before the report`s start date: the GDR envisages that the parties may include a number of timetables in the GDR: (i) the “electoral plan” (this timetable is mandatory and includes all elections and the information that the parties must make or insert with respect to the provisions of the main part of the agreement (like the timetable of an ISDA contract); (ii) a static data calendar (optional, see paragraph 3 below); and/or (iii) a timetable for operational and procedural provisions (which is also optional). The transfer of the reporting obligation to a counterparty or third party is authorized by EMIR (although the liability for the misrepresentation remains within the purview of the delegated counterpart) and buy-side counterparties can expect their dealers counterparties to offer this service. However, traders are not required to do so and traders` attempts to assist their customers with their obligations by offering a delegated reporting service, against the desire to protect themselves from liability in this regard, have resulted in traders being reluctant to offer delegated reporting services, although ISDA published a report in July 2013 in which the standard language was presented.

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