Online tool tackles EMIR regulatory burden

28 Feb 2017

Netting Collateral + Reviewer now available

International law firm Simmons & Simmons has launched a new online tool which enables European derivatives market participants to effectively streamline and manage independent legal reviews of enforceability for EMIR compliance purposes.

The Netting + Collateral Reviewer is uniquely tailored to the needs of the buy-side.

The EMIR margin rules for uncleared OTC derivatives require an independent legal review of the enforceability of netting and collateral agreements. This tool allows subscribers to satisfy this multi-jurisdictional requirement in an efficient and cost-effective manner.

It provides: 

  • User-friendly, matrix format navigation (as opposed to lengthy formal opinions) 
  • Traffic light coding so that users can see at a glance the position in each key jurisdiction 
  • Detailed legal reviews of enforceability 
  • A receipt of access which can be retained on file for audit purposes 
  • Alerts where there is a change in law affecting a matrix.

The tool will be of interest to asset managers (wherever located) who trade derivatives for European funds/clients, as well as to UCITS, AIFs with authorised AIFMs, insurance companies and most European pension schemes trading in the OTC derivatives market.

Craig Bisson, partner at Simmons & Simmons says: “we have already seen tremendous interest from firms around the World who are subject to the obligation, or act for clients that are. They are aware of the requirements but are unsure of how they are going to comply. What they know is that writing out to counsel in five – 10 jurisdictions is a sure-fire way of receiving an expensive legal bill, and they’re looking for a cost-effective alternative that will take the pain out of this new regulatory obligation. With the Reviewer, which was designed in consultation with clients and with the help and support of our Innovation Group, this is exactly what we’ve created”.

In developing the tool, Simmons & Simmons engaged its international network of offices, also working with leading counsel in other jurisdictions including Blakes (Canada), Brodies (Scotland), Gomissen Felderspiel (Denmark), Lenz & Staehelin (Switzerland) and Seward + Kissel (US).

Simmons & Simmons is an innovative, solutions-driven law firm, focused on helping clients effectively manage cross-border regulatory issues. In recent years the firm has delivered a number of award-winning tools to the market, such as: Simmons & Simmons navigator, Simmons & Simmons MiFID2 Manager and Simmons & Simmons Horizon.

Watch the video here.

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