Archive: June, 2011
With the introduction of central clearing for OTC derivatives, financial institutions will have to manage new agreements, with different business rules, in addition to the existing documentation for bilateral trading relationships.
Exari’s Paul Nelmes was recently interviewed by Julia Schieffer of DerivSource and he explained how documentation will change within a Central Counterparty Clearing (CCP) environment and why financial institutions must implement efficient documentation processing methods to avoid increased legal and operational costs caused by the new market requirements.
DerivSource: How does the introduction of central counterparty clearing change the documents used to support OTC derivatives?
Exari: The existing Over-the-Counter (OTC) clearing documentation structure between financial institutions and clients or counterparties in the bilateral trade clearing environment, will be supported by the existing International Swaps and Derivatives Association (ISDA) Master Agreement and supplemental documents/annexes such as Credit Support Annex (CSA), trade confirmations.
Thanks to all of you (and there were more than 400 in-house attorneys) who completed our recent Sales Contract Survey which we conducted in conjunction with InsideCounsel Magazine.
If you’d like a sneak peek at the results, join us on Tuesday, June 28th at 11:00 am (EDT) when Karen Cariello, Associate Publisher of InsideCounsel, will be presenting some of the early findings in a webinar. You can register for the webinar here.
Rees Morrison, President of Rees Morrison and Associates, will be joining us as well and sharing some of his benchmark survey results and advice on law department best practices, as they relate to the sales contracts process.
Congratulations to Laurie McCall, Vice President and Associate General Counsel of Harris Broadcast Communications, who was the lucky winner of the iPad drawing held among the survey respondents.
Rees Morrison, noted law department management advisor and blogger has launched the largest benchmark survey ever done for law departments. We encourage you to join the more than 300 law departments who have already completed the General Counsel Metrics survey. All participants will receive a complimentary report of the results in July.
We are sponsoring a virtual roundtable discussion featuring a panel of leading experts who will the discuss challenges that Corporate Legal Departments face in trying to reduce risk in their sales contracts. You are invited to attend the complimentary webinar on Tuesday, June 28, 2011 at 11:00 am (EDT). Click here to register.
The panel will be sharing results from the recent InsideCounsel survey on the “state of sales contracts,” discussing how to use benchmarks to compare business process to best practice, and providing strategies for law departments to help improve their sales contracts processes in order to reduce risk.