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ISDA notification letter for clearing status

ISDA have just issued this standard framework for counterparties to notify each other of clearing status. It is to be used either by “NFC-‘s” to notify of that fact, or by others to notify of the clearing category when in mandatory clearing.  A guidance note may be found here.

At present, most energy and commodity traders are “NFC-“, i.e. non financial counterparties under the clearing threshold. However, many such companies may soon find themselves as Financial Counterparties (FC) because of loss of exemption under MiFID II. If this happens mandatory clearing will apply.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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