Intro to Regulatory Margin Rule Implementation and SFT Documentation

强制保证金规则及ISDA的SFT文件使用

Tuesday, September 27, 2022
Online

Member US$0.00

Non-Member US$0.00

Event begins in:
days
0
0
hours
1
3
mins
5
0
secs
5
9

This conference will be delivered in Chinese

 

2022年8月ISDA出版了认可中国净额结算的法律意见书,该意见书涵盖了常见的场外衍生交易以及证券融资交易(以下简称SFT):即回购和证券出借交易。ISDA的法律意见书在《期货和衍生品法》生效的同一日发布。该法对终止净额结算及期货和场外衍生品交易提供了强有力的法律保障,大大降低了信用风险,从而减少了和中国机构进行衍生品交易时所需的监管资本。ISDA法律意见书的发布和《期货和衍生品法》是中国衍生市场发展中的里程碑,本研讨会将集中讲解这一发展在交易文件上产生的两大影响。

在国外非集中清算的场外衍生品交易的强制保证金规则已执行了若干年。虽然目前中国尚未发布强制保证金规则,国内机构在和国外机构交易时,国外机构需遵循的强制保证金规则同样会适用于和国内机构进行的交易。虽然欧盟、英国、瑞士以及亚太一些国家和地区的规则对来自于净额结算国家的交易对手有豁免性规定,但在中国净额结算的法律意见书出版后,这一豁免不再会适用,这意味着和相关中国机构的交易也需遵循保证金规则。本研讨会的上半场会聚焦于强制保证金规则,详细介绍在交换初始保证金(IM)和变动保证金(VM)时需要考虑的文件、托管人及担保品管理的程序及系统问题。

目前《ISDA主协议》是唯一得到中国监管者认可的国际主协议。对《ISDA主协议》的认可对《期货和衍生品法》中未涵盖的回购交易的净额结算至关重要。随着ISDA发布中国净额结算的法律意见书及在今年二月出版新SFT定义,和同一对手方进行衍生品和/或回购交易的金融机构可以将该等交易置于ISDA主协议下,而无需担心净额结算的可执行性。因此,我们相信市场参与者在和中国金融机构的跨境回购交易中有使用《ISDA主协议》的需求。本研讨会的下半场将集中探讨和中国金融机构的跨境回购交易使用ISDA的SFT文件的相关问题。

On August 1, ISDA published a new legal opinion that recognizes the enforceability of close-out netting under Chinese law in a wide range of OTC derivatives and securities financing transactions (SFTs), i.e., repo and securities lending transactions. The netting opinion coincides with the entry into force of the Futures and Derivatives Law (FDL), which provides statutory protection for netting and establishes a statutory framework for the trading of futures and derivatives in China. This very significant development will reduce credit risk by protecting close-out netting, thereby reducing the amount of capital firms need to hold and the cost of entering into derivatives transactions with Chinese counterparties.  The publication of the ISDA netting opinion and the implementation of the FDL are landmark developments, with various implications. This seminar will consider two aspects of the new regime that impact documentation.  

Margin rules for uncleared derivatives (UMR) have been in place in several jurisdictions for many years. While there are currently no margin rules in China, the foreign regimes can apply when foreign firms transact with Chinese counterparties. Margin rules in the EU, UK, Switzerland and some Asia-Pacific jurisdictions provide exemptions from posting margin for trades with counterparties in non-netting jurisdictions. Now that China has a clean netting opinion in place, this exemption is likely to fall away and non-cleared derivatives transactions with in-scope Chinese entities may become subject to the requirements. The first half of this seminar is designed to give firms a comprehensive guide to UMR implementation and break down what firms need to do when negotiating documentation, establishing custodial relationships and putting in places systems and process for calculating and exchanging variation margin (VM) and initial margin (IM).   

The ISDA Master Agreement is currently the only international standard master agreement that has been recognised by Chinese financial regulators as a qualifying master netting agreement. This recognition is particularly significant for repo transactions, which are not covered by the FDL. With the certainty provided by the ISDA netting opinion, and following the publication in February of a new definitional booklet and related provisions to allow firms to document derivatives and SFTs under a single ISDA Master Agreement, firms will now be able to enter into repo transactions and derivatives with the confidence of enforceable close-out netting. It is therefore expected there will be strong rationale for firms to enter into repo transactions under the ISDA Master Agreement when transacting with Chinese financial institutions on a cross-border basis. The second half of the seminar will focus on how the 2022 ISDA SFT documentation can be used to document cross-border repo transactions, with a particular focus on the China use-case. 

 

Registration for this event will close 2 hours before the live broadcast
研讨会将于直播前2小时停止注册

 

线上研讨会将于2022年9月27日,北京时间上午9时至下午12时30分举行
研讨会将使用中文,演示材料将使用中文或英语。
登记参会者可重复观看研讨会录像至2022年10月27日。

This is an ISDA Virtual Conference:

  • This conference will be delivered in Chinese. Presentation materials will be in Chinese or English. Simultaneous interpretation will NOT be provided
  • Event will be live on September 27, 2022 from 9:00 AM – 12:30 PM Beijing Time  |  Timezone Converter
  • Miss part of the event or aren’t able to watch live? The recording will be available to registrants until October 27, 2022

Tags: , ,

Jump to Section:

Tuesday, September 27, 2022

Print Agenda Intro to Regulatory Margin Rule Implementation and SFT Documentation for

9:00 AM 欢迎词 | Introduction and Welcoming Remarks Jing Gu

Jing Gu, Head of Legal, Asia Pacific, ISDA

9:05 AM 快进 - 强制保证金规则的执行 | Fast Forward to Compliance Jing Gu, Bin Tan, Terry Yang

本节会总结强制保证金规则的基本要求以及不同国家和地区的规则之异同,并探讨在执行这一规则时需采纳的步骤,包括如何计算总平均名义金额(AANA),决定某一机构是否属于保证金规则涵盖的交易对手方,相关信息披露以及业界使用的披露方式。

This session will summarize the main regulatory requirements and highlight differences between rule sets that could affect implementation. The session will also set out the steps that firms need to take, including, calculating aggregate average notional amounts (AANA)and identifying in-scope entities, disclosure to counterparties, as well as highlight industry tools available to help with the disclosure process.

Jing Gu, Head of Legal, Asia Pacific, ISDA
Bin Tan, Senior Legal Counsel, China International Capital Corporation (International) Limited
Terry Yang, Partner, Clifford Chance

9:50 AM 下载 – 文件协议问题 | Documentation Download Andrew Fei, Jing Jia, Cherry Li, Kimi Liu, Simon Zhang

在强制保证金规则适用前完成所需VM和IM的谈判和签署至关重要。本节课将介绍ISDA发布的VM和IM履约保障文件,及在协议谈判中需考虑的选项。在执行IM规则时,交易方需要在托管机构开设隔离账户并签署相关托管文件,本节也会从托管机构和交易者的角度来探讨其中的关键问题。

Firms need to ensure the necessary VM and IM documentation is negotiated and put in place with each counterparty ahead of the implementation date. This session will describe the ISDA’s VM and IM credit support documents and various elections firms need to make in the process. Setting up segregated accounts with custodians and entering into necessary documentation is a key part of compliance with initial margin requirements. This session will also examine some of the key points to consider from the custodian and user perspectives.

Andrew Fei, Registered Foreign Lawyer (New York, USA), King & Wood Mallesons
Jing Jia, Senior Legal Counsel, Commercial, Corporate & Institutional Banking, Standard Charted Bank (China) Limited
Cherry Li, APAC Head of Liquidity and Margin Services, The Bank of New York Mellon
Kimi Liu, Counsel, He Ping Law Firm
Simon Zhang, Counsel, Linklaters

10:30 AM 休息 | Break

10:40 AM 下载 – 文件协议问题(继续)| Documentation Download (continued)

11:10 AM 2022 ISDA SFT文件简介 | Overview of the 2022 ISDA Securities Financing Transactions Documentation Chin-Chong Liew

本节会讲述2022 ISDA SFT定义以及附件条款,以及如何使用这些条款。主要议题包括:

  • 违约事件
  • 违约赔偿
  • 交易终止
  • SFT和衍生交易的关联

This session will provide an explanation of the 2022 ISDA Securities Financing Transactions Definitions and related Schedule Provisions, focusing on how these documents provide for SFTs to be documented. Topics to be considered will include:

  • Events of Default
  • Remedies for default
  • Close-out process
  • Desired level of interaction between SFT and derivatives portfolios
Chin-Chong Liew, Capital Markets Partner, Hong Kong, Linklaters

11:45 AM 和中国金融机构进行跨境回购交易时使用ISDA主协议 | Documenting Cross-border Repo Transactions with Chinese Financial Institutions under the ISDA Master Agreement Jing Gu, Andrew Fei, Bin Tan, Ying Zhou

本节会探讨如何在回购交易中使用ISDA主协议,使用ISDA协议时中国法下的净额结算所带来的益处,如何决定ISDA 2022 SFT定义及附件条款中关于回购交易的选项以达到双方就风险分配的要求。

Panelists will discuss how repo transactions can be documented under ISDA Master Agreement, the netting benefits that this offers under Chinese law, and how the elections in the 2022 ISDA Securities Financing Transactions Definitions and related Schedule Provisions can be used to tailor repo-related terms to meet the parties’ desired risk allocation.

Moderator: Jing Gu, Head of Legal, Asia Pacific, ISDA
Andrew Fei, Registered Foreign Lawyer (New York, USA), King & Wood Mallesons
Bin Tan, Senior Legal Counsel, China International Capital Corporation (International) Limited
Ying Zhou, Counsel, Linklaters Zhao Sheng

12:30 PM 研讨会结束 | Conference Concludes

Agenda is subject to change.

Back to Top

Andrew Fei

Registered Foreign Lawyer (New York, USA)

King & Wood Mallesons

Jing Gu

Head of Legal, Asia Pacific

ISDA

ISDAConferences

Jing Jia

Senior Legal Counsel, Commercial, Corporate & Institutional Banking

Standard Charted Bank (China) Limited

Cherry Li

APAC Head of Liquidity and Margin Services

The Bank of New York Mellon

Chin-Chong Liew

Capital Markets Partner, Hong Kong

Linklaters

Kimi Liu

Counsel

He Ping Law Firm

Bin Tan

Senior Legal Counsel

China International Capital Corporation (International) Limited

Terry Yang

Partner

Clifford Chance

Clifford_Chance

Simon Zhang

Counsel

Linklaters

Ying Zhou

Counsel

Linklaters Zhao Sheng

Back to Top

                    

Follow us on LinkedIn and Twitter for the latest on upcoming events.

For general questions, including exhibition/sponsorship opportunities, conference topics or location suggestions contact us: conferences@isda.org | +1 212-901-6000