January 2017

The Swiss Financial Market Infrastructure Act (FMIA) and its implementing Ordinances (FMIO and FMIO-FINMA) entered into effect on January 1, 2016. The FMIA imposes on counterparties a number of obligations, namely clearing as well as reporting and risk mitigation obligations which include the obligation to post margins. These new obligations shall be incorporated by counterparties into their contractual documentation. In this context, the International Swaps and Derivatives Association (ISDA) has published new documents which specifically take into account the FMIA obligations. The purpose of this Newsflash is to provide Swiss market participants with an update on this new documentation with a particular focus on documentation to implement the margin rules.