As funds and corporates head toward the 12 October start line for reporting their smaller derivative portfolios, an ISDA publication has just been released which facilitates their access to the recently finalised relief for single-sided reporting. This standard representation letter is published following an extensive consultation process and will be important to those who seek the benefit of the relief and the banks which report trades, so that the relief can be provided.
The letter sets out a set of standard representations a fund or corporate wishing to rely on single-sided reporting relief could receive from their counterparty. That counterparty can select the representation which it wants to provide from a menu of representations included in the letter. The letter contains various formulations of the representations that are required for relief to apply. Depending on which representation a counterparty elects to provide, funds and corporates should ensure that all of its transactions with a particular counterparty are covered by the relief. Of course, funds and corporates should also ensure they meet the other conditions set by the Government in order to rely on that relief.
A link to the representation letter can be found here.
More information about single-sided reporting relief can be found here.