FIA Terms of Business 2018 – Version 2.0

Whether your firm provides clearing services for exchange-traded derivatives (ETD) or for cleared OTC derivatives, or executing services for ETD, you need to ensure that your contractual documentation is up-to-date and compliant with the latest regulatory developments and business practices. FIA has maintained a suite of Terms of Business for the provision of client clearing services for over 15 years in partnership with the law firm Clifford Chance LLP. FIA recently released our newest, fully updated and comprehensive state-of-the-art set of industry standard contractual terms for derivatives clearing – the FIA Terms of Business 2018, as well as the accompanying User Guide explaining the regulatory background to most of the provisions and including alternative/optional provisions. This documentation is governed by English law and is suitable for derivatives clearing under a principal-to-principal clearing model.

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Understanding the FIA Terms of Business 2018

Date: 28/03/2025

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FIA Terms of business 2018 – Version 2.0

FIA Terms of Business 2018 – Version 2.0

FIA Indirect Clearing Terms

FIA Professional Client Agreement 2011

FIA Terms of Business 2018

FIA continuously monitors legal and regulatory developments in the UK and in the EU with a view to assessing their impact on the FIA Terms of Business 2018. Following the latest review, we recently published an updated version of the User Guide to the FIA Terms of Business 2018 (Version 2.0), as well as updated versions of certain FIA Indirect Clearing Terms.

The updated User Guide features the following changes and new sections:

optional language for the Clause 9.4 (Retained Margin);
amendments to the two-way default provisions in respect of indirect clearing arrangements;
a new BRRD section;
a new Indirect Clearing section;
a new EU CCPRRR section; and
consequential amendments.

Following detailed analysis and review by external counsel, FIA published updated versions of the following three Indirect Clearing Terms:

2011 Longer Chain CM-DC Terms;
2011 Longer Chain Middle Link Terms; and
2018 Longer Chain Middle Link Terms.

The updated versions now contain:

the multiple capacity updates;
the corrigenda and clarifications in relation to certain netting scenarios (corrigenda amendments were only made to the 2011 and 2018 Middle Link Terms); and
consequential amendments and drafting improvements.

The updated FIA Terms of Business 2018:

Reflect the latest regulatory developments in Europe, predominantly but not exclusively MiFID II/R;
Amend comprehensively certain legal concepts and terms to reflect industry trends and clearing service evolution;
Introduce brand-new indirect clearing terms;
Consolidate and streamline various pre-2018 agreements and modules;
and
Retain and enhance the concept of Core Provisions so firms will be able to rely on FIA netting and collateral opinions.

Contact FIA to create an account and access a preview copy of the FIA Terms of Business 2018. For more information about how to subscribe contact Mitja Siraj, FIA’s Vice President of Legal, Europe.