“Top Up Agreement” Leverages ISDA’s March 2013 Dodd-Frank Protocol
The European Market Infrastructure Regulation (“EMIR”) is the European Union measure that implements the G-20 recommendations for derivatives. It applies generally to the activities of European entities that trade in derivatives, including their trading activities with non-European counterparties.
Earlier this year, ISDA finalized and published the ISDA March 2013 DF Protocol
In light of the many questions that we have been receiving from clients regarding the operation of CFTC Rule 1.73, we have prepared the attached diagrams to illustrate how the rule applies to give up transactions as well as bunched orders.
Although the deadline to adhere to ISDA’s “Dodd-Frank Protocol I” has effectively been extended to May 1, 2013, T-H recommends that firms planning to adhere submit their protocol adherence letter and exchange questionnaires with dealer counterparties no later than March 31, 2013 to avoid processing delays that could occur as the deadline approaches.