Agreement Extending Dodd-Frank Protocol to Certain EMIR Rules Published by ISDA | Practical Law

Agreement Extending Dodd-Frank Protocol to Certain EMIR Rules Published by ISDA | Practical Law

On September 10, 2013, ISDA published an extension agreement to its March 2013 Dodd-Frank Protocol agreement. The agreement aims to help parties comply with both the Dodd-Frank Act and EMIR regulations related to portfolio reconciliation and dispute resolution.  

Agreement Extending Dodd-Frank Protocol to Certain EMIR Rules Published by ISDA

Practical Law Legal Update 1-541-0845 (Approx. 3 pages)

Agreement Extending Dodd-Frank Protocol to Certain EMIR Rules Published by ISDA

by Practical Law Finance
Published on 12 Sep 2013 • USA (National/Federal)
On September 10, 2013, ISDA published an extension agreement to its March 2013 Dodd-Frank Protocol agreement. The agreement aims to help parties comply with both the Dodd-Frank Act and EMIR regulations related to portfolio reconciliation and dispute resolution.
On September 10, 2013, ISDA published an extension agreement, also referred to as the "DFP2 to EMIR Top Up Agreement," to the ISDA March 2013 Dodd-Frank Protocol (March 2013 DF Protocol). The March 2013 DF Protocol aims to help market participants comply with regulations promulgated under the Dodd-Frank Act, including those related to portfolio reconciliation and dispute resolution (see Practice Note, US Derivatives Regulation: Internal Business Conduct (IBC) Rules for Swap Dealers and MSPs). The ISDA July 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Dispute Resolution and Disclosure Protocol (July 2013 EMIR Protocol) covers certain requirements under EMIR. The extension agreement aims to help parties comply with both the Dodd-Frank Act and EMIR.
The extension agreement contains provisions related to the following:
  • July 2013 EMIR Protocol. Under the extension agreement, parties agree to use their existing arrangement under the March 2013 DF Protocol to help them comply with the portfolio reconciliation and dispute resolution requirements of EMIR without completely adopting the July 2013 EMIR Protocol. The extension agreement simultaneously amends some portions of the March 2013 DF Protocol and adopts several provisions of the July 2013 EMIR Protocol.
  • Optional Termination. Because ISDA recognized that some parties could choose in the future to solely use the March 2013 DF Protocol, the extension agreement contains an optional termination clause, which suggests a number of alternatives to terminate the extension agreement.
Counsel for market participants should consult with their clients to determine whether to adopt the extension agreement or continue obligations under the March 2013 DF Protocol.
For more information, see Practice Note, The ISDA Dodd-Frank Protocol.