Variation Margin ‘Big Bang’ - Are you Ready for March 2017?

Understanding the VM Requirements and New Documentation for Uncleared Swaps Including the ISDA 2016 VM Protocol

01/24/2017

Corporate, Financial Transactions, Derivatives + Commodities, Mergers + Acquisitions | Europe, and Derivatives + Commodities Regulation

L'Hotel du Collectionneur
51-57 rue de Courcelles
Paris, France 75008

Vladimir Maly

Vladimir Maly

Speaking Engagement

Morrison & Foerster Partner Vladimir Maly will be giving two talks at the Variation Margin 'Big Bang' - Are you ready for March 2017? Conference in Paris.

The two sessions will cover:

  • Variation Margin Requirements: This session will run through the specific requirements for Variation Margin that firms will need to meet under the US and EU rules, including:
    • Transactions covered by the rules
    • Eligible collateral and minimum haircuts
    • Valuation frequency and collateral settlement timing
    • Documentation and legal review requirements
  • An introduction to the ISDA 2016 Variation Margin Protocol and New Collateral Documentation Architecture: The broad application of the Variation Margin rules will require a large number of counterparty relationships to be redocumented to comply with the regulations. The ISDA 2016 Variation Margin Protocol leverages ISDA’s Protocol technology and the new 2016 Variation Margin CSAs to facilitate this repapering exercise. The Protocol sets out three alternative “Methods” for establishing regulation-compliant CSAs, which may include establishing multiple CSAs under a single Master Agreement. This session will examine this new documentation architecture and show how it is reflected in New CSA Method, Amend Method and Replicate-and-Amend Method under the Protocol. It will also outline the basic design features of the Protocol.

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