Understanding Margin Regulations and the 2016 ISDA Credit Support Documents

Thursday, February 22, 2018
Tokyo

Jump to Section:

Thursday, February 22, 2018

8:15 AM Registration and Morning Coffee

8:50 AM Introduction and Welcoming Remarks Tomoko Morita

Tomoko Morita, Senior Director and Head of Tokyo Office, ISDA

9:00 AM Regulatory Margin Requirements for Non-Cleared Derivatives Yoshihiro Ueshima, Yosuke Unami

This session will explain the margin requirements in Japan 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 are the variation margin (VM) and initial margin (IM) requirements?
  • Cross-Border implications and key similarities/differences with rules in other jurisdictions
  • Impact on CSA documentation
Yoshihiro Ueshima, Chief Manager, Global Markets Regulatory Affairs Office, Global Markets Planning Division, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Yosuke Unami, Associate, Ito & Mitomi (Registered Associated Offices of Morrison & Foerster LLP)

10:15 AM Morning Break

10:30 AM Understanding the ISDA Variation Margin CSA Kantaro Nakamaru, Hajime Saito

This session will provide an in depth analysis of:

  • ISDA 2016 Credit Support Annex for Variation Margin (VM) (Loan – Japanese Law)
  • ISDA 2016 Credit Support Annex for Variation Margin (VM) (Security Interest – New York Law)
  • ISDA 2016 Credit Support Annex for Variation Margin (VM) (Title Transfer – English Law)

This session will also compare these forms of ISDA’s Credit Support Annex that are governed by laws of each jurisdiction.

Kantaro Nakamaru, Managing Associate, Capital Markets Group (Structured Finance & Derivatives), Linklaters
Hajime Saito, Managing Associate, Capital Markets Group (Structured Finance & Derivatives), Linklaters

12:30 PM Luncheon

1:30 PM Negotiating Paragraph 13 to the Japanese Law Variation Margin CSA Motoyasu Fujita, Yoko Miyamoto, Hiroaki Usui

This session will examine terms specified and added to Paragraph 13, including:

  • Eligible Collateral and Valuation Percentages
  • Covered Transactions
  • Independent Amount
  • Minimum Transfer Amounts
  • Ratings Ladders
  • Valuation Time and Valuation Date
  • Valuation Agent
  • Specified Conditions
  • Notification Time
  • Transfer Timing – What changes can market participants make?
  • Resolution Time
  • Value of Collateral
Motoyasu Fujita, Partner, Capital Markets Group (Structured Finance & Derivatives), Linklaters LLP
Yoko Miyamoto, Legal Department, BNP Paribas Securities (Japan) Limited
Hiroaki Usui, Deputy Head of Transaction Legal, Executive Director, Transaction Legal Department, Nomura Securities Co., Ltd.

2:30 PM Segregation of Independent Amount: Trust Scheme and Custodians Hidetaka Kisanuki, Satoshi Sakano

This session will examine the regulatory requirements under the Financial Instruments and Exchange Act (FIEA), in which the parties need to segregate initial margins in the manner that 1) collected collateral is immediately available to the collecting party in the event of the counterparty’s default, and 2) collected collateral is subject to arrangements that protect the posting party in the event of the collecting party’s default. The session will discuss two approaches – segregation scheme using Japanese trust accounts and custodians, including the overviews of each scheme and the trust agreement developed in the industry.

Hidetaka Kisanuki, Senior Relationship Manager, Sales & Relationship Management, Euroclear Bank SA/NV Japan Branch
Satoshi Sakano, Manager, Custody & Structured Products Coordination Department, Mizuho Trust & Banking Co., Ltd.

3:30 PM Afternoon Break

3:45 PM Initial Margin Requirements – IM calculation, documentation and operations Tomoko Morita, Yosuke Unami

The number of firms subject to initial margin requirements will increase over the next few years as requirements are phased in annually until 2020. Market participants will need to prepare for these changes in advance. This session will examine the key requirements under US, EU and Japanese rules and industry solutions, including:

  • Transaction scope, eligible collateral and haircuts (comparison with variation margin requirements)
  • IM calculation, including model requirements and ISDA SIMMTM
  • Segregation requirements and operational flows
  • Documentation and legal review requirements – including ISDA-published documents and legal opinions
Tomoko Morita, Senior Director and Head of Tokyo Office, ISDA
Yosuke Unami, Associate, Ito & Mitomi (Registered Associated Offices of Morrison & Foerster LLP)

5:00 PM Conference Concludes

Register Now for Understanding Margin Regulations and the 2016 ISDA Credit Support Documents
Back to Top

Fukuracia Tokyo Station: Asahi Seimei Otemachi Bldg. 2-6-1, Otemachi, Chiyoda-ku, Tokyo

Back to Top

Tomoko Morita

Senior Director and Head of Tokyo Office

ISDA

Yoshihiro Ueshima

Chief Manager, Global Markets Regulatory Affairs Office, Global Markets Planning Division

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Yosuke Unami

Associate

Ito & Mitomi (Registered Associated Offices of Morrison & Foerster LLP)

Kantaro Nakamaru

Managing Associate, Capital Markets Group (Structured Finance & Derivatives)

Linklaters

Hajime Saito

Managing Associate, Capital Markets Group (Structured Finance & Derivatives)

Linklaters

Motoyasu Fujita

Partner, Capital Markets Group (Structured Finance & Derivatives)

Linklaters LLP

Yoko Miyamoto

Legal Department

BNP Paribas Securities (Japan) Limited

Hiroaki Usui

Deputy Head of Transaction Legal, Executive Director, Transaction Legal Department

Nomura Securities Co., Ltd.

Hidetaka Kisanuki

Senior Relationship Manager, Sales & Relationship Management

Euroclear Bank SA/NV Japan Branch

Satoshi Sakano

Manager, Custody & Structured Products Coordination Department

Mizuho Trust & Banking Co., Ltd.

Back to Top

Intermediate

Some knowledge of derivatives documentation is assumed. No advance preparation is required.

Back to Top

Don’t see the topic or location you are looking for? Let us know, we may add it to our schedule in the future.

For more information regarding conferences or exhibition opportunities, please contact the ISDA conference department at +1 212-901-6000 email conferences@isda.org.