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Where parties wish to execute [[OTC]] swap transactions which are subject to mandatory clearing they will execute a clearing agreement such as the FIA-[[ISDA]] [[Cleared Derivatives Execution Agreement]]. This can be an annex to their {{isdama}} or the the [[FIA]] terms of business. | Where parties wish to execute [[OTC]] swap transactions which are subject to mandatory clearing they will execute a clearing agreement such as the FIA-[[ISDA]] [[Cleared Derivatives Execution Agreement]]. This can be an annex to their {{isdama}} or the the [[FIA]] terms of business. | ||
===How will mandatory OTC to CCP clearing change things?=== | ===How will mandatory OTC to CCP clearing change things?=== | ||
The relationship between the {{ccp|end user}} and the | The relationship between the {{ccp|end user}} and the [[broker/dealer]] — currently memorialised in a {{isdaprov|Confirmation}} for a {{isdaprov|Transaction}} under an {{isdama}} — will continue, but the [[broker/dealer]], in its capacity as a {{ccp|clearing member}} of the {{ccp|clearinghouse}}, will act as a “[[clearing agent]]” for the {{ccp|end user}}. | ||
The {{isdaprov|Transaction}} between the {{ccp|end user}} and the {{ccp|clearing member}} will continue under a new customer agreement (which may be a modified {{isdama}}), but the {{isdaprov|Transaction}} will be subject to the {{ccp|clearinghouse}} rules. | The {{isdaprov|Transaction}} between the {{ccp|end user}} and the {{ccp|clearing member}} will continue under a new customer agreement (which may be a modified {{isdama}}), but the {{isdaprov|Transaction}} will be subject to the {{ccp|clearinghouse}} rules. |