ISDA publish EMIR Classification Letter

In response to member demand, ISDA has published a standardised EMIR Classification Letter. The letter serves as the bilateral equivalent to ISDA Amend’s online classification tool, enabling parties to exchange formal notice of their status  with respect to EMIR’s clearing and risk mitigation obligations. ISDA have also published an accompanying Guidance Note to assist in the interpretation and completion of the Letter’s various fields. Given the Letter’s publication in advance of ESMA’s final Interest Rate Products RTS, the form may require revision to reflect changes in the RTS.

The financial industry is not currently suffering a shortage of necessary forms to fill; however, the Classification Letter is a necessary and laudable initiative. Considering the labyrinthine territory it seeks to map, the Guidance memo is a model of concision and the provision of a standard form will facilitate data ingestion and digitisation