Icom Master Agreement

Surveys conducted at the time IFXCO was conducted showed that, although there have been some significant changes in the Forex market since 1997 and many new contracts have been concluded with an updated ISDA management contract (from 2002), many participants have also used the IFEMA (and FEOMA) agreements. In general, this is due either to the fact that they had been executed some time earlier and had not been replaced, or because counterparties (including, until now, many non-traders, such as hedge funds) wanted to act only in exchange and/or exchange rate options transactions, and that IFEMA and FEOMA preferred because they were simpler agreements. All of these contracts stipulate that the parties enter into the agreements with the intention of having only one contract, but with a number of different payment obligations. Moreover, the agreements clearly show that this is the only reason they enter into the relationship. Under these conditions, participants can react in different ways. they may choose (i) to act only in jurisdictions where legal certainty is assured, that the compensation agreement is enforceable in the event of bankruptcy; (ii) to enter into separate agreements for each legal order or by pair of branches; or (iii) to use a separation clause in the master`s contract that would only allow paired compensation if the non-failing party has established that the compensation is legally applicable. Any FX transaction or optional currency transaction pending or entered into on that date between the parties on that date is expressly subject to the agreement, regardless of references to confirmation or other framework contracts (. B for example FEOMA, IFEMA, ICOM, all specified conditions). It should be a common industrial standard, as it is included in the TBMA/GMRA and FEOMA agreements and in the ISDA Loss methodology. The creation of IFEMA was established through the Foreign Exchange Committee, sponsored by the Federal Reserve Bank of New York, but independent, and the British Bankers` Association. In all jurisdictions, agreements have been developed by the private sector; However, central banks and supervisory authorities of national banks have been informed of developments in the private sector.

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