The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of the ISDA 2013 Reporting Protocol.
The ISDA 2013 Reporting Protocol, which contains a counterparty’s consent to the disclosure of information, is intended to facilitate market participants’ compliance with mandatory trade reporting requirements.
ISDA is also publishing Side Letters (Principal and Agent versions), which parties can enter into bilaterally, that contain the same consent language as found in the Protocol. To the extent that parties may need to satisfy additional disclosure requirements, it may be possible to incorporate such additional requirements into the Side Letters on a bilateral basis.
“We are committed to making markets safer and more efficient, and the ISDA 2013 Reporting Protocol and Side Letters are among the many tools that ISDA is making available to help market participants meet their trade reporting obligations,” said Robert Pickel, ISDA Chief Executive Officer.
ISDA has published separate Protocols facilitating compliance with certain requirements of the US Dodd-Frank Act, and will soon publish a Protocol doing the same for EMIR requirements. These Protocols also include, or will include, disclosure consents. The Reporting Protocol is intended to be more generic than the Dodd-Frank and EMIR Protocols, while being consistent with them. The Reporting Protocol may be particularly useful for market participants who, due to the nature or level of their trading activity, may not be required to comply with certain provisions of the Dodd-Frank and EMIR Protocols but who nonetheless face trade reporting obligations.
The Protocol will be open until ISDA designates a closing date, and is open to ISDA members and non-members alike. The text of the Protocol and a link to adhere to the Protocol, as well as guidance on the mechanics of the Protocol, answers to frequently asked questions and details on adherents, are available on the Protocol Management section of ISDA’s website.
