Understanding Variation Margin Regulations and the 2016 ISDA Variation Margin Credit Support Documents

Thursday, June 7, 2018
Hong Kong

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Thursday, June 7, 2018

8:15 AM Registration and Morning Coffee

9:00 AM Introduction and Welcoming Remarks Melody Ma

Melody Ma, Assistant General Counsel, ISDA

9:15 AM Regulatory Variation Margin requirements for non-cleared derivatives Vimal Motwani, Christopher Whiteley

This session will explain the Variation Margin (VM) requirements in the EU and other key jurisdictions implementing the international WGMR framework. The session will look at:

  • Which entities are subject to the requirements?
  • Which trades are subject to the requirements?
  • What the VM requirements are?
  • Cross-Border implications and key similarities/differences with rules in other jurisdictions
  • Impact on CSA documentation

Speakers to be announced

Vimal Motwani, Assistant General Counsel, Bank of America Merrill Lynch
Christopher Whiteley, Partner, Ashurst

10:45 AM Morning Break

11:15 AM Understanding the ISDA English Law Variation Margin CSA Hilda Loong, Simon McKnight, Subramanian Natarajan

This session will discuss the 2016 Credit Support Annex for Variation Margin. The two new forms published in 2016 allow parties to establish Variation Margin and Initial Margin arrangements that meet the requirements of new regulations on margin for uncleared swaps. This session will look at:

  • The Transferor & Transferee. How can this party change over time?
  • Scope of Covered Transactions under CSA
  • Credit Support Obligations: the Delivery Amount and Return Amount
  • Eligible Collateral and Valuation Percentages
  • Minimum Transfer Amounts
  • Value of Collateral
  • Adding an Independent Amount, using the Independent Amount (IA) Provisions
  • Transfer Timing: when must a party deliver or return collateral – what changes can they make?
  • Valuation Time and Valuation Date
  • Valuation Agent
  • Notification Time
  • Dispute Resolution
Hilda Loong, Executive Director and Senior Counsel, Legal Department, Goldman Sachs (Asia) L.L.C
Simon McKnight, Partner, Simmons & Simmons (London), Foreign Legal Consultant (England & Wales) at Simmons & Simmons in Hong Kong
Subramanian Natarajan, Senior Legal Counsel, Global Banking & Markets Legal, HSBC

12:15 PM Luncheon

1:30 PM Understanding the ISDA English Law Variation Margin CSA Continued

  • Exchanges
  • Distributions and Interest Amounts
  • Enforcement following Event of Default
  • Credit Support Offsets
  • Legally ineligible Credit Support Provision
  • Ratings Ladders
  • Valuation Agent
  • Terms for non-netting counterparties
  • Other Provisions

2:30 PM Collateral Arrangements under New York Law in comparison to English Law Arrangements Jeffrey H. Chen

This session will discuss the 2016 Credit Support Annex for Variation Margin governed by New York law.

Other speakers to be announced

Jeffrey H. Chen, Partner, Head of Asia Structured Finance, Dentons Hong Kong LLP

3:15 PM Afternoon Break

3:45 PM Update on Developments in International Law regarding Collateral and Derivatives and ISDA Collateral Opinions Francis Edwards

This session will focus on the following initiatives:

  • EU directive on Bank Recovery and Resolution: provisions specific to collateral arrangements and inter-relation with the EU Collateral Directive
  • FSB/BCBS global recommendations on effective resolution regimes: effects on collateral arrangements
  • The collateral opinions ISDA has collected from over 50 jurisdictions and recent updates in relation to WGMR implementation
Francis Edwards, Partner, Clifford Chance

4:45 PM Conference Concludes

Register Now for Understanding Variation Margin Regulations and the 2016 ISDA Variation Margin Credit Support Documents
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The Excelsior, Hong Kong, 281 Gloucester Road, Causeway Bay, Hong Kong. Phone +852 2894 8888

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Jeffrey H. Chen

Partner, Head of Asia Structured Finance

Dentons Hong Kong LLP

Francis Edwards

Partner

Clifford Chance

Hilda Loong

Executive Director and Senior Counsel, Legal Department

Goldman Sachs (Asia) L.L.C

Melody Ma

Assistant General Counsel

ISDA

Simon McKnight

Partner, Simmons & Simmons (London)

Foreign Legal Consultant (England & Wales) at Simmons & Simmons in Hong Kong

Vimal Motwani

Assistant General Counsel

Bank of America Merrill Lynch

Subramanian Natarajan

Senior Legal Counsel, Global Banking & Markets Legal

HSBC

Christopher Whiteley

Partner

Ashurst

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Introductory

Basic knowledge of derivatives documentation is beneficial but not mandatory. Some knowledge of financial markets is assumed. No advance preparation is required.

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