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ISDA® Publishes US Self Disclosure Letter for Margin Compliance
Practical Law Legal Update w-031-0318 (Approx. 5 pages)
ISDA® Publishes US Self Disclosure Letter for Margin Compliance
by Practical Law Finance
| Published on 18 May 2021 • International, USA (National/Federal) |
ISDA published a US Self-Disclosure Letter (US SDL) to assist firms in determining whether compliance with certain CFTC, prudential, and/or SEC rules is required, as well as if, and when, their trading relationship will become subject to CFTC, prudential, or SEC regulatory margin requirements for uncleared swaps and/or security-based swaps (SBS), as applicable.
On January 15, 2021, ISDA® published a US Self-Disclosure Letter to assist firms in determining whether compliance with certain CFTC, prudential, and/or SEC rules is required, as well as if, and when, their trading relationship will become subject to CFTC, prudential, or SEC regulatory margin requirements for uncleared swaps and/or security-based swaps (SBS), as applicable.
Note that the US Self-Disclosure Letter supersedes:
- The US portion of the ISDA Regulatory Margin Self-Disclosure Letter (see Practice Note, Global Margin Compliance for Uncleared Swaps: ISDA Margin Compliance Self-Disclosure Letter (SDL)); and
- The ISDA Cross-Border Swaps Representation Letter (see Legal Update, ISDA Publishes Cross-border Swaps Representation Letter and Methodology), in its entirety.
The letter includes the following sections which solicit information through check the box questions regarding:
- Registration status.
- Connection to the US.
- Exemption from margin rules.
- Financial entity status.
The questions also contain explanatory notes and instructions to further assist market participants find the correct responses as well as an appendix containing defined terms used in the letter.
For details on the US margin rules, see Practice Note, US Derivatives Regulation: Margin Collection and Exchange Requirements for Uncleared Swaps.
For further detail on the ISDA SDLs and explanation of the ISDA regulatory credit support annexes (CSAs) and other margin materials, see:
For information on ISDA margin resources – including protocols and other SDLs – that can assist parties with the margin compliance process, see the following Legal Updates (date in parenthesis is ISDA publication date):
- ISDA Publishes Initial Margin AANA Self-Disclosure Letter (October 31, 2019)
- ISDA Publishes 2018 Information Letter for Initial Margin (July 11, 2018)
"ISDA" is a registered trademark of the International Swaps and Derivatives Association, Inc. (ISDA). ISDA is not a sponsor of Practical Law and had no part in the development of this resource.