This pre-recorded conference is 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非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. 

This is a pre-recorded Virtual Conference

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Recording available until December 31, 2023

• 研讨会使用中文，演示材料使用中文或英语。本次研讨会没有提供同声传译
• 这是于2022年9月27日举行的强制保证金规则及ISDA的SFT文件使用线上研讨会的录像
• 登记者可在2023年12月31日, 香港时间下午5时前重复观看研讨会录像
• 提交注册后，您将收到一封电子邮件包含研讨会录像链接及会议材料

This is an ISDA Virtual Conference:

• This pre-recorded conference is delivered in Chinese. Presentation materials will be in Chinese or English. Simultaneous interpretation will NOT be provided
• This is a recording of the Introduction to Regulatory Margin Rule Implementation and SFT Documentation (Chinese) virtual conference which took place on June 15, 2022
• Registrants will have access to the recording until 5:00 PM HKT on December 31, 2023.
• After submitting your registration, you will receive a confirmation email with a link to view the documents and recording

Tags: Documentation, Legal, Securities Financing Transactions (SFT)