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Portfolio reconciliation and dispute resolution - EMIR: Difference between revisions
Portfolio reconciliation and dispute resolution - EMIR (view source)
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{{ | {{a|euregulation|}}A part of [[EMIR]] relating to — [[portfolio recognition]] and [[dispute resolution]]. ({{Eureg|648|2012|EU}}. | ||
A part of [[EMIR]] relating to — [[portfolio recognition]] and [[dispute resolution]]. ({{Eureg|648|2012|EU}}. | |||
:“Dispute resolution aims at mitigating risks stemming from contracts that are not centrally cleared. When entering into [[OTC derivative]] transactions with one another, counterparties should have an agreed framework for resolving any related dispute that may arise. The framework should refer to resolution mechanisms such as third party arbitration or market polling mechanism. The framework intends to avoid unresolved disputes escalating and exposing counterparties to additional risks. Disputes should be identified, managed and appropriately disclosed.” | As per the recital to those delegated regulations: | ||
{{quote| | |||
“Dispute resolution aims at mitigating risks stemming from contracts that are not centrally cleared. When entering into [[OTC derivative]] transactions with one another, counterparties should have an agreed framework for resolving any related dispute that may arise. The framework should refer to resolution mechanisms such as third party arbitration or market polling mechanism. The framework intends to avoid unresolved disputes escalating and exposing counterparties to additional risks. Disputes should be identified, managed and appropriately disclosed.”}} | |||
{{isda prdr summary}} | {{isda prdr summary}} | ||
===[[ | ===[[Dispute resolution]]=== | ||
{{quote| | |||
{{ | Article 15: '''Dispute resolution''' | ||
Article 15 | |||
Dispute resolution | |||
1. When concluding OTC derivative contracts with each other, financial counterparties and non-financial counterparties shall have agreed detailed procedures and processes in relation to: | 1. When concluding OTC derivative contracts with each other, financial counterparties and non-financial counterparties shall have agreed detailed procedures and processes in relation to: | ||
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ISDA’s sainted PRDR Protocol has this to say on the topic of dispute resolution: | ISDA’s sainted PRDR Protocol has this to say on the topic of dispute resolution: | ||
{{ | {{quote| | ||
4 '''Dispute Identification and Resolution Procedure'''<br> | |||
The parties agree that they will use the following procedure to identify and resolve Disputes between them: <br> | The parties agree that they will use the following procedure to identify and resolve Disputes between them: <br> | ||
(a) either party may identify a Dispute by sending a {{isdaprov|Dispute Notice}} to the other party; <br> | (a) either party may identify a Dispute by sending a {{isdaprov|Dispute Notice}} to the other party; <br> | ||
(b) on or following the {{isdaprov|Dispute Date}}, the parties will consult in good faith in an attempt to resolve the Dispute in a timely manner, including, without limitation, by exchanging any relevant information and by identifying and using any {{isdaprov|Agreed Process}} which can be applied to the subject of the {{isdaprov|Dispute}} or, where no such {{isdaprov|Agreed Process}} exists or the parties agree that such {{isdaprov|Agreed Process}} would be unsuitable, determining and applying a resolution method for the {{isdaprov|Dispute}}; and <br> | (b) on or following the {{isdaprov|Dispute Date}}, the parties will consult in good faith in an attempt to resolve the Dispute in a timely manner, including, without limitation, by exchanging any relevant information and by identifying and using any {{isdaprov|Agreed Process}} which can be applied to the subject of the {{isdaprov|Dispute}} or, where no such {{isdaprov|Agreed Process}} exists or the parties agree that such {{isdaprov|Agreed Process}} would be unsuitable, determining and applying a resolution method for the {{isdaprov|Dispute}}; and <br> | ||
(c) with respect to any Dispute that is not resolved within five {{isdaprov|Joint Business Days}} of the {{isdaprov|Dispute Date}}, refer issues internally to appropriately senior members of staff of such party or of its {{isdaprov|Affiliate}}, adviser or agent in addition to actions under (b) immediately above (including actions under any {{isdaprov|Agreed Process}} identified and used under (b) immediately above) and to the extent such referral has not occurred as a result of action under (b) immediately above (including any {{isdaprov|Agreed Process}}).<br> | (c) with respect to any Dispute that is not resolved within five {{isdaprov|Joint Business Days}} of the {{isdaprov|Dispute Date}}, refer issues internally to appropriately senior members of staff of such party or of its {{isdaprov|Affiliate}}, adviser or agent in addition to actions under (b) immediately above (including actions under any {{isdaprov|Agreed Process}} identified and used under (b) immediately above) and to the extent such referral has not occurred as a result of action under (b) immediately above (including any {{isdaprov|Agreed Process}}).<br> | ||
5 '''Internal processes for recording and monitoring Disputes'''<br> | |||
Each party agrees that, to the extent the {{isdaprov|Dispute Resolution Risk Mitigation Technique}}s apply to each party, it will have internal procedures and processes in place to record and monitor any {{isdaprov|Dispute}} for as long as the {{isdaprov|Dispute}} remains outstanding. | Each party agrees that, to the extent the {{isdaprov|Dispute Resolution Risk Mitigation Technique}}s apply to each party, it will have internal procedures and processes in place to record and monitor any {{isdaprov|Dispute}} for as long as the {{isdaprov|Dispute}} remains outstanding. | ||
}} | }} | ||
{{sa}} | |||
*[[Dispute Resolution - CSA Provision]] | |||