ISDA has today published the first two clearing member reliance opinions for the Cayman Islands and Denmark. A number of other clearing member and client reliance opinions will be published in due course.

In 2013, an ISDA legal working group began initial discussions on obtaining legal opinions with regards to the ISDA/FOA Client Cleared OTC Derivatives Addendum when used in conjunction with an ISDA Master Agreement. Priority jurisdictions were identified by members, and ISDA has since commissioned a number of clearing member and client reliance opinions, looking at close-out netting and other issues from the perspective of the clearing member and client, respectively. These clearing opinions are available only to ISDA members and can be accessed by visiting the ISDA member’s page here (log in required).

Separately, the first US futures commission merchant (FCM) model client clearing legal opinion was published in August 2013, covering netting and collateral enforceability by an FCM under the FIA-ISDA Cleared Derivatives Addendum together with an underlying futures and options agreement. There are now nine of these opinions available (including the Bahamas, British Virgin Islands, Canada, Cayman Islands, Channel Islands (Jersey), Channel Islands (Guernsey), Japan, Luxembourg and USA). These clearing opinions have been jointly commissioned by ISDA and the Futures Industry Association. ISDA members can access these opinions here (log in required).