The European Markets Infrastructure Regulation (EMIR) regulates the European derivative markets, central counterparties (CCPs) and trade repositories (TRs). Those EMIR rules cover timely confirmations, marking to market, portfolio reconciliation, portfolio compression, valuation, and dispute resolution. The EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol (cont.) Parties shall agree on the arrangements under which the portfolios shall be reconciled. The ISDA 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol allows counterparties to amend the terms of their ISDA Master Agreement to implement the portfolio reconciliation and dispute resolution requirements imposed by EMIR. FC and NFC+ each business day when the counterparties have 500 or more OTC derivative contracts outstanding appropriate prudential requirements 8. EMIR’s risk mitigation obligations also call for adequate capital to cover exposures arising from OTC derivatives not cleared through a dedicated clearing house and for segregated exchange of collateral, though until such time as the European Supervisory Authorities develop technical standards on the treatment of collateral, parties may apply their own rules. July 2013 EMIR Protocol. 5. What is EMIR? The protocol enables parties to amend their ISDA Master Agreements (and other agreements) to comply with EMIR’s obligations relating to portfolio reconciliation and dispute resolution. The extent to which EMIR obligations apply to a market participant depends EMIR – Non-financial counterparty page 2 2. EMIR that relate, amongst other matters, to Portfolio Reconciliation, Dispute Identification and Resolution Procedures and Timely Confirmation (please see further details in the relevant sections below); and (ii) act as a supplementary set of terms which the Parties agree are incorporated into and EMIR legislation (level 1 text) was implemented in 2014. Portfolio reconciliation is the process used to ensure that key transaction terms of transactions in a derivative portfolio between two counterparties are in agreement. These technical standards require agreement of the parties before a Customers with an ISDA agreement are asked to adhere to the “ISDA 2013 EMIR portfolio reconciliation, dispute resolution and disclosure protocol”. The Protocol also includes a disclosure waiver to help ensure that parties can meet the various reporting and record keeping requirements under EMIR without breaching confidentiality restrictions to which they may be subject. The Exchange method requires both parties to send … derivatives (timely confirmation, dispute resolution, portfolio reconciliation and portfolio compression) from which there are no exemptions. The Portfolio may Data They are also agreeing to except EMIR-mandated disclosures from existing confidentiality agreements. Generally speaking, by adhering, parties are agreeing to a market-standard process for portfolio reconciliation and dispute resolution. 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