Prior to entering into OTC derivatives contracts your firm needs to know facts about your potential counterparty including:
All of this (and more) is available via ISDA and AOSphere using their new on-line services. ISDA and aosphere LLP have launched a new service that will enable users to quickly and efficiently assess issues relating to the enforceability of electronically executed and confirmed contracts across the globe.
The tool, called diligence – ISDA e-contracts, covers ISDA’s e-contract opinions and allows ISDA members to rapidly view factors relating to the use of electronic contracts, e-signatures and click-through agreements in an intuitive color-coded web format, including enforceability and admissibility of electronic records in court proceedings. The tool is hosted on the aosphere platform, which also hosts other services that analyze ISDA opinions including netalytics and CSAnalytics.
The launch of the service reflects the increasing number of derivatives, securities financing and repo transactions that are being executed and confirmed electronically. The coronavirus pandemic has further heightened interest in e-contracts, with the closure of offices and the introduction of remote working highlighting challenges and inefficiencies associated with the physical delivery of signed paper documents and notices.
In response, ISDA has expanded the scope and jurisdictional coverage of its e-contract opinions. Thirty seven jurisdictions are currently covered, with a further 10 commissioned this year.
For more information on ISDA’s e-contract opinions, visit the ISDA website.
For more information on diligence – ISDA e-contracts or to request a trial or demo, visit the aosphere website.
Photo by Kelly Sikkema on Unsplash
The continuing restrictions imposed on firms due to government guidelines on coronavirus (COVID-19) safe practice are having a knock-on effect on the finalising of legal documentation, particularly in respect of signatures.
Jurisdictions have differing laws on signatures used on documentation. In the current circumstances, it is important to know whether signatories may replace wet-ink with e-signature and if so, under what conditions. European law firm Fieldfisher has developed and launched an online portal to track legal opinions on e-signatures for financial documentation in 37 countries.
Fieldfisher's Electronic Signatures Opinion Portal tool enables International Swaps & Derivatives Association, Inc. (ISDA) member firms to easily access and digest elements of the legal opinions on electronic signatures commissioned by ISDA. Continually updated, the portal contains new information when it is available; such as the recent announcement by the Law Society for England and Wales setting out its position on the use of virtual execution and e-signature during the COVID-19 pandemic; and the recent statement from Financial Conduct Authority that its rules do not explicitly require wet-ink signatures in agreements.
Head of Fieldfisher's derivatives and structured finance group, Guy Usher, said under the current lockdown conditions dictated by the coronavirus outbreak, ISDA members would benefit from a clear and concise reference tool to assess current opinions on e-signatures. "The portal contains simplified summaries of the opinions as they apply to certain ISDA documentation and provides our assessment on whether the conclusions in those opinions should apply to other forms of documentation for financial transactions," said Mr Usher. "In view of the current global lockdowns which are in place we are conscious that market practice has been quickly evolving so we have also included some practice notes and recent developments."
The portal is currently available free to ISDA member firms that register on the Fieldfisher website - https://www.fieldfisher.com/en/services/financial-markets-and-products/electronic-signatures-opinion-portal.
The portal is not a product that has been authorised or approved by ISDA. The underlying legal opinions belong to ISDA, which is why only ISDA members may use the portal.