These requirements shall comply with the relevant EMIR requirements in terms of frequency and thresholds for portfolio reconciliation. Since, as already mentioned, the frequency of portfolio reconciliation depends on the status of the counterparty (FC, NFC+ or NFC) and the number of outstanding contracts that counterparties have with each other, it should be noted that these two elements may change over time and, therefore, the frequency of portfolio reconciliation requirements changes. Each entity that adheres to the protocol chooses in its letter of membership whether it is a portfolio data issuer or a portfolio data receiving entity. Upon accession, a member party may change its status as an elected representative by agreement with one or more of its counterparts. Presumably, companies that do not have the desire or infrastructure to perform the portfolio reconciliation will choose to be entities that send portfolio data. However, as the table above shows, this in itself does not guarantee to avoid the requirement of a vote. For example, as of 24 July 2013, only two companies had acceded to the Protocol: I am a third-country company. If my counterparty and I, who is also a third-country company, both join, do we have to follow the portfolio reconciliation and dispute resolution method for transactions between us that would not otherwise be subject to EMIR? Either Party may only change its designation as a Portfolio Data Sending Entity or Portfolio Data Receiving Entity, as originally selected on the election ballot, with the written consent of the other Party. Yes, with the consent of your counterparty. Such an agreement may predate the date of application of the Protocol and may already exist (although this must be verified) through the service agreements that the parties have signed with the third party. The ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol allows the parties to amend the terms of their agreements covered by the Protocol to reflect the portfolio reconciliation and dispute resolution requirements imposed by EMIR, as well as to include a waiver of disclosure to ensure that the parties can meet the various reporting and record-keeping requirements under EMIR without violate privacy restrictions.

If you add a customer to a framework agreement after the date you comply with the protocol on behalf of your customers (whether that customer is an existing customer on the implementation date or a customer purchased after the implementation date), that customer will be added to that framework agreement as amended by the protocol, unless otherwise agreed. If a party decides to be designated as the receiving unit of portfolio data and each of its counterparties in OTC derivative contracts has chosen to become an entity that sends portfolio data, the unit receiving the portfolio data simply receives relevant data from each of its counterparties. In such cases, the recipient company of the portfolio data is required to make a comparison of the data received with its own records. Any discrepancies found as a result of that examination shall be notified to the counterparty concerned if it is considered that the discrepancy in the data may be significant. Both parties must then try to solve the problem in time. For example, the ERMTA standard allows the portfolio to be revalued by an affiliate (even without the counterparty`s consent, only advance notice is required) and with the consent of the other party (such an agreement cannot be unreasonably refused or delayed) using a duly appointed and qualified third-party provider or other entity that is not an affiliate. Start date of portfolio reconciliation requirements For non-financial corporations with 100 or fewer OTC derivative contracts in progress, the required frequency of portfolio reconciliation is almost once a year, which does not appear to be excessively burdensome and particularly disrupts the business processes carried out so far. If you do not have the authority of all your clients (or if you have the authority of all your clients and wish to identify them), you can comply on behalf of the clients you have authorised by selecting ”Investment/Asset Manager/or another agent on behalf of some, but not all, funds/or any other principal they represent” and naming the investment/asset manager/agent. The default language ”on behalf of the funds, accounts or other principals listed in the Annex to this Letter of Accession in relation to the relevant agreement (or any other agreement which considers that an agreement should be concluded) between that fund (as agent) on behalf of that fund, account or other procuring entity and another contracting party” is provided to you. You will then need to list the names of the funds by naming each of them in the field provided for this purpose (”Fund Name”) or by selecting ”Add more than 10 funds” and uploading a list of these funds. (2) any such agreement or credit supporting document contains express terms and conditions that any modification or modification of such agreement without the consent, approval, agreement, approval or other action of such third party will invalidate, harm or otherwise affect any existing or future obligations owed to a third party under this credit document.

influence; or If my counterparty and I both register as a receiving entity for portfolio data, do we need to negotiate a separate agreement or amend bilaterally? If so, what is the benefit of compliance? If neither party is satisfied with sending portfolio data, the parties must agree on another appropriate process to match the wallet data that meets their needs. When describing responsibility for portfolio reconciliation, it should be noted that under ERMTA and ISDA, failure to comply with contractual portfolio reconciliation requirements does not constitute a default event, termination event, or material reason (without prejudice to statutory rights and remedies). Parties wishing to integrate EMIR portfolio requirements into their contractual documentation have at least two framework agreements: ERMTA also contains specific provisions that govern portfolio reconciliation, which is carried out using third-party agents and providers. However, the provisions of the Protocol on Portfolio Reconciliation and Dispute Settlement apply only to transactions subject to the related provisions of EMIR, so parties are not required to apply the relevant methodology until 15 September 2013. 1. The financial and non-financial counterparties of an OTC derivative contract shall agree with each of their counterparties, in writing or by other equivalent electronic means, on arrangements under which the portfolios will be reconciled. Such an agreement must be concluded before the conclusion of the OTC derivative contract. ”The processes by which a counterparty is deemed to have made a portfolio reconciliation after a specified period of time would be compliant, provided that both counterparties have agreed in advance to reconcile the portfolio after that process.” As the relevant technical standards will enter into force on 15 September 2013, the requirements will therefore apply from that date to the portfolio of current contracts. .