ISDA Euroclear Documents (2019)

ISDA Euroclear Documents (2019)

The following documents 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 2019 versions of these documents have been updated to reflect the changes made in the ISDA 2018 Credit Support Annex For Initial Margin (IM) (Security Interest – New York Law) and the 2018 Credit Support Deed For Initial Margin (IM) (Security Interest – English Law) published in September 2018. The documents can be used in conjunction with Euroclear’s new 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 ‘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 are available here.

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