ISDA 2016-2019 Euroclear Collateral Transfer Agreements and Security Agreements

ISDA Euroclear Documents (2020)

The ‘Euroclear and Third Party Custodian Combined Platform – Bilateral Rider’ allows parties to make certain technical amendments in the Additional Terms section of Paragraph 13 of a CSD, CSA or CTA to accommodate the Euroclear Collateral Portfolio Service, a hybrid offering which allows collateral to be posted with any Third Party Custodian with certain additional triparty features provided by Euroclear.

ISDA Euroclear Documents (2019)

The ISDA 2019 Euroclear Collateral Transfer Agreement and ISDA 2019 Euroclear Security Agreement are used to document a collateral arrangement between two parties where the collateral is held in a Euroclear account for use in complying with initial margin requirements. The documents can be used in conjunction with Euroclear’s MultiSeg service which holds pledged assets in legally segregated unique subdivisions of the pledged account, as well as with the traditional single special segregated account structure referenced in earlier versions of these documents. The governing law of the Collateral Transfer Agreement defaults to the governing law of the underlying ISDA Master Agreement. Parties using a French law governed ISDA Master Agreement should incorporate the ‘Recommended Amendment Provisions for ISDA Euroclear CTA for use with French law ISDA Master Agreement’, which is provided as a standalone document.

The ‘Euroclear and Third Party Custodian Combined Platform – Bilateral Rider’ allows parties to make certain technical amendments in the Additional Terms section of Paragraph 13 of a CSD, CSA or CTA to accommodate the Euroclear Collateral Portfolio Service, a hybrid offering which allows collateral to be posted with any Third Party Custodian with certain additional triparty features provided by Euroclear.

The ‘Rider for the ISDA Euroclear 2019 CTA with respect to the use of a Pledgee Representative’ and ‘Rider for the ISDA 2019 Euroclear Security Agreement with respect to the use of a Pledgee Representative’ have been created to allow parties to document a relationship were one party is using a pledge representative. Parties wishing to use these documents should add the relevant provisions to paragraph 13 of the Euroclear CTA and paragraph 22 of the Euroclear Security Agreement, and add the rider to their Euroclear CTA and Euroclear Security Agreement, as indicated in the riders.

Where parties have elected to apply the Japanese Collateral Provisions, the Recommended Amendment Provisions for ISDA Euroclear Collateral Transfer Agreement (2018) and ISDA Euroclear Security Agreement (2018) with respect to Japanese Collateral will apply. In addition, the Japanese Security Collateral Provider Provisions (IM) for the ISDA 2019 Euroclear Security Agreement enable parties to benefit from the protection for security interest collateral arrangements under the amendment to the Act on Close-Out Netting of Specified Financial Transactions Conducted by Financial Institutions (the “Netting Act”) which was enacted on 31 May 2019 and became effective on 1 May 2020 (the “Amendment”). Following the implementation of the Amendment, security interest collateral arrangements are now recognized and protected in the reorganization proceedings of a Japanese Pledgor (before such implementation, only title transfer collateral arrangements were covered by the Netting Act).

Annotated versions of the 2019 Euroclear Documents (Collateral Transfer Agreement and Security Agreement) are also included, setting out descriptions and explanations of the impact of each of the common elections that may be made in the documents.

In some cases, the documents replace earlier published versions, which are also included.

The SEC IM Supplement (Third Party Segregation) supplement is designed for use where a party is subject to SEC regulatory initial margin (IM) requirements, and the parties wish to segregate their SEC IM with an independent custodian. It relies on the segregation terms contained in the existing ISDA initial margin documents, and can be used with any of the following: 2018 IM CSA, 2018 IM CSD, 2019 Bank Custodian CTA, 2019 Clearstream CTA, and 2019 Euroclear CTA. You can access this supplement here.

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