Portfolio reconciliation and dispute resolution - EMIR: Difference between revisions

Portfolio reconciliation and dispute resolution - EMIR (view source)

Revision as of 11:36, 18 January 2020

2,554 bytes added , 18 January 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

82,882

edits

@@ Line 1: / Line 1: @@
-A part of [[EMIR]] relating to — [[portfolio recognition]] and [[dispute resolution]]. ({{Eureg|648|2012|EU}}
+{{sa}}
+*[[Dispute Resolution - CSA Provision]]
-===[[dispute resolution]]===
+A part of [[EMIR]] relating to — [[portfolio recognition]] and [[dispute resolution]]. ({{Eureg|648|2012|EU}}. as per the recital to those delegated regulations:
+:“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}}
+===[[dispute resolution]]===
 {{box|
@@ Line 16: / Line 21: @@
 :(b) the resolution of disputes in a timely manner with a specific process for those disputes that are not resolved within five business days.
 .   Financial counterparties shall report to the competent authority designated in accordance with Article 48 of {{Eudirective|2004|39|EC}} any disputes between counterparties relating to an OTC derivative contract, its valuation or the exchange of collateral for an amount or a value higher than EUR 15 million and outstanding for at least 15 business days.
+}}
+ISDA’s sainted PRDR Protocol has this to say on the topic of dispute resolution:
+{{box|
+====(4) Dispute Identification and Resolution Procedure====
+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>
+(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>
+====(5) Internal processes for recording and monitoring {{isdaprov|Disputes}}====
+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.
 }}