The 2016 version of the security agreement is designed for the use of the Clearstream security account on behalf of the security provider. The 2017 version of the Security Agreement is designed to be used when the Clearstream warranty account is in the name of the security taker, and this version should be used if the parties intend to use the recommended modification provisions for Japanese warranties (“shichiken”). These can be used with one of the two versions of the collateral transfer agreement. The novation agreement was prepared to allow the parties to move from the 2016 version of the security agreement to the 2017 version. Around the world, impending rules such as EMIR and Dodd-Frank impose strict margining requirements on OTC derivatives, which will have a big influence on buyside and Sellside customers. Clearstream`s Global Liquidity Hub provides margining services for cleared and undissetting OTC derivatives from a single collateral pool. The advantage of this approach is that there is only Margin Call. However, this means that independent sums that were possible in the past under a transfer of ownership contract (e.g. .B. of the English VM CSA Act of 2016), which allowed for the reuse of collateral, are now held in a separate account, with no right to reuse. In addition, the types of collateral that can be reserved should comply with the applicable regulatory rules. There are two versions of the 2019 security agreement, one for the use of the Clearstream security account on behalf of the security provider and the other for the use of the Clearstream guarantee account on behalf of the borrower.

The latter version should be used if the parties wish to adopt the isDA 2017 recommended amendments to the Clearstream Security Agreement regarding Japanese safeguards (“shichikens”) provided as separate documents and also included as a choice, as they are intended for future use with the 2019 versions of the Clearstream documents. The 2019 versions of these documents have been updated to reflect changes to ISDA 2018 Credit Support Annex For Initial Margin (IM) (Security Interest – New York Law) and Credit Support Deed For Initial Margin (IM) (Security Interest – English Law) published in September 2018. The applicable law of the collateral transfer agreement is applicable to the applicable law of the underlying ISDA master agreement. Parties using an isDA framework agreement under French law should take over the “Recommended Amendment Commissions for ISDA Clearstream CTA for use with French Law ISDA Master Agreement”, which are provided as a separate document. The Clearstream Security Agreement is a standard framework agreement that defines security interests over the collateral held by Clearstream. #UMR, #IOSCO.#collateral, #collateralmanagement, #phase5umr, #emir.#derivatives There are two versions of the security agreement, one for the use of the Clearstream warranty account in the name of the security provider (Pledgor / Posting) and the other for use if the Clearstream security account is in the name of the Security Taker (pledge / recovery part). These are amounts independent in the context of another CSA between the guarantor of the guarantee and the policyholder of the guarantee. The margin amount (IA) relating to the guarantee provider`s reservation obligation is the sum of all independent amounts included in another CSA (e.g. B a VM CSA or isda Credit Support Annex of 1995 under English law) and any other amounts related to the guarantee provider which might not be defined as an independent amount, but function as such. Excluded are all margin (IM) amounts and all amounts that relate to Exposure (i.e. .