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The ISDA March 2013 EMIR NFC Representation Protocol is designed to allow swap market participants simultaneously to amend multiple ISDA Master Agreements for the purpose of facilitating compliance with certain Know Your Counterparty requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EMIR) and the regulatory technical standards made under it.
The classification of parties and their counterparties determines the application of certain risk mitigation techniques required by EMIR and set out further in the regulatory technical standards published by the European Commission and, in future, the clearing obligation.
The Timely Confirmation Amendment Agreement is a form of agreement that market participants can use as part of their tool kit for compliance with the obligation imposed by EMIR to provide timely confirmation of the terms of an uncleared OTC derivative contract.
“EMIR imposes a range of new regulatory obligations on OTC derivatives market participants”, said Robert Pickel, ISDA Chief Executive Officer. “As we begin to implement EMIR, the ISDA March 2013 EMIR NFC Representation Protocol and the Timely Confirmation Amendment Agreement are the first in a series of tools that ISDA plans to make available to market participants to facilitate their compliance with EMIR.”
The Protocol will be open until ISDA designates a closing date. Compliance with certain of EMIR’s requirements for which the Protocol may be relevant is required by March 15, 2013.