Offices; Multibranch Parties - ISDA Provision: Difference between revisions

Those details fans will have overlooked the strange, parallel universe of [[tax|taxation]]. Here physical presence and not [[legal personality]] is what matters. Specifying that your counterparty may trade from its offices in, for example, [[Prague]], [[Kabul]] or [[The Sudan]] may impact the [[tax]] payable on payments under the relevant transactions under the [[ISDA]]. Where both parties are multibranch parties and have numerous overseas branches, a complex multilateral analysis of all the different permutations is assured.

Yes — and no. A case where the operational reality trumps the legal theory. If you have a [[Multibranch ISDA]] that lists, say, Prague, The Sudan<ref>I know, I know. It was a joke.</ref> and Wellington, do you need to [[Onboarding|onboard]] the client in each of those jurisdictions? Students of [[onboarding]] will recognise this as a collossal disincentive to adding branches willy-nilly, but that legal implication will typically depend on an operational setup in the [[broker]]’s systems without which it won’t be possible to book a trade in that jurisdiction whatever the legal docs say. So look upon the legal contract as permissive; the thing that will drive your KYC obligations and trigger the onboarding onslaught will be opening an account in your systems at a later date.