FIA recently published eight sets of contractual indirect clearing terms to help clearing firms document indirect clearing arrangements under MiFIR and EMIR. Developed by FIA with Clifford Chance and member firms,the FIA Indirect Clearing Terms supplement contractual terms based on either the 2011 Professional Client Agreement or the soon-to-be-launched 2018 Terms of Business.
Different versions of the FIA Indirect Clearing Terms are available for use depending on the FIA documentation being supplemented, whether the terms will apply between the CM and DC or the DC and IC, and whether they will be used with Basic OSAs only or Basic OSAs and GOSAs. Drafted for use with simple indirect clearing chains (CCP-CM-DC-IC), separate advice guides their modification for use with longer chains. The FIA Indirect Clearing Terms include explanatory footnotes and a disclaimer that FIA encourages firms to read before they start using the templates.
FIA also published three supplementary memoranda on (i) longer chains, (ii) indirect clearing segregation/the concept of netting sets and (iii) the impact of FIA Indirect Clearing Terms on the FIA netting and collateral opinions.
The FIA Indirect Clearing Terms complement and complete FIA’s suite of indirect clearing documentation. They form part of the wider FIA Documentation Library, which includes the soon-to-be-launched 2018 Terms of Business and a number of different legal opinions. The FIA Indirect Clearing Terms are available to FIA member and non-member firms for a fee. For further details or in case of any questions, visit the FIA Documentation Library or contact Mitja Siraj.
FIA and Clifford Chance will host multiple breakfast briefings and webinars related to the FIA Indirect Clearing Terms and the 2018 Terms of Business throughout May. Member and non-member firms are welcome to attend. The first breakfast briefing takes place on 10 May in London. Learn more and register!