3.1.2 Trade Confirmation
Effective from 2021-03-23 - Mar 22 2021
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| 4. | Banks are required to confirm the material terms of a non-centrally cleared over-the- counter derivatives transaction as soon as practicable after execution of the transaction, including a new transaction resulting from novation. Banks are also required to adopt policies and procedures to confirm material changes to the legal terms of, or rights and obligations under, the non-centrally cleared over-the-counter derivatives contract, such as those relating to termination prior to scheduled maturity date, assignment, amendment or extinguishing of rights or obligations. | |
| 5. | The material terms confirmed should include terms necessary to promote legal certainty to the non-centrally cleared over-the-counter derivatives transaction, including incorporating by reference, the trading relationship documentation or any other documents that govern or otherwise form part of the trading relationship documentation. | |
| 6. | The confirmation should be executed in writing through: | |
| A. | Non-rewritable, non-erasable automated methods where it is reasonably practicable for the bank to do so; | |
| B. | Manual means; or | |
| C. | Other non-rewritable, non-erasable electronic means (such as email). | |
| 7. | Banks are required to implement appropriate policies and procedures to ensure a two-way confirmation is executed with a counterparty (financial and non-financial). | |
| 8. | For non-centrally cleared over-the-counter derivatives transactions concluded after the bank’s dealing system cut off time, or with a counterparty located in a different time zone, banks are required to execute the confirmation as soon as practicable. | |