Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (“MiFIR”) and the related Commission Delegated Regulation (EU) 2017/567 of 18 May 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions (the “Delegated Regulation”) contain a number of provisions that relate to the provision of, and participation in, portfolio compression services by investment firms and market operators.
From January 3, 2018, investment firms and market operators that provide portfolio compression services will be required by Article 17 of the Delegated Regulation to conclude an agreement with the participants in that service. The ISDA 2017 Portfolio Compression Agreement is a template for use by market participants to comply with these requirements.
The ISDA 2017 Portfolio Compression Agreement addresses bilateral compression only, whereby two parties are seeking to compress their existing transactions. It does not address compression arrangements where participants are seeking to submit transactions to a third-party service provider (whether an affiliate or on a commercial basis). It is expected that third-party service providers will arrange their own form of compression agreement or will make necessary amendments to their existing platform documentation.
Documents (1) for ISDA 2017 Portfolio Compression Agreement
Latest
Joint Response to ETS Review
On November 2, ISDA and the Association for Financial Markets in Europe submitted a joint statement on the European Commission’s call for feedback on the review of the EU Emissions Trading System (ETS). The response highlights the importance of a...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
ISDA Publishes ISDA SIMM® Methodology, Version 2.9+2606
Following the 2026 primary calibration exercise, ISDA is pleased to publish ISDA SIMM® version 2.9+2606. This version incorporates updates arising from the recalibration of the model using historical data up to and including 30 June 2026. The ISDA SIMM methodology...
Moving Regulatory Reporting up a Gear with AI
The aim of derivatives regulatory reporting is to improve transparency so regulators can monitor market activity and identify emerging risks. Although reporting rules and subsequent updates have resulted in improvements, they haven’t achieved fully consistent outcomes, leading to implementation and...