The VM Protocol: What Is It and What Does It Mean?

In the financial industry, some major events are occurring. On March 1st of this year, the Variation Margin Protocol (VM Protocol or VM Big Bang) officially went into effect in order “to help market participants comply with new rules on margin for uncleared swaps, by providing a scalable solution to amend derivatives contract documentation with multiple counterparties. The Protocol addresses documentation changes necessary to comply with the variation margin requirements.” These documentation changes are applicable to many companies and people who are involved in the market. For an in-depth explanation of the rules and what they mean, check out this post for an explanation of the rules.

What is the VM Protocol?

The International Swaps and Derivatives Association, Inc. (ISDA) developed and published the VM Protocol in order to help those companies and people involved in the market to adjust to the new margin rules that are going into effect this year. The VM Protocol is a way to help these entities ensure that they “create new or amend existing credit support documentation to reflect the requirements of the Margin Rules.”

The Protocol mainly focuses on parties that may be affected by the new Margin Rules that apply to uncleared derivative trades. The VM Protocol allows those affected to choose one of three options: “amend any existing credit support annex (“CSA”) to become compliant with the Margin Rules, retain existing CSAs and enter into new CSAs based on the existing CSA (with changes necessary to satisfy the Margin Rules), or enter into new CSAs based on ISDA’s 2016 Credit Support Annex for Variation Margin (VM).”

How does the VM Protocol help?

If you’re someone who is going to be affected by the new Margin Rules, you’re likely wondering how the VM Protocol can help you out. Benefiting from the Protocol is a two-step process done through the ISDA. First, you must send the ISDA a letter stating your intention to adhere to the VM Protocol. Your second step is to take a questionnaire, either online or as a hard copy, and then send that questionnaire to the ISDA. All of the adherence resources can be found on ISDA’s website. As of right now, there is no cut-off date for complying with the Protocol, but the ISDA does have the right to set one.

Being proactive is the best way to get ahead of these Margin Rules. By learning whether or not your interests are protected by the VM Protocol and how to go about adhering to the Protocol, you can protect yourself and other parties and continue doing successful business.

from Manisha Dorawala | Professional Overview http://ift.tt/2nPZ1GU
via IFTTT

What Does Hostage Negotiation and Your Business Have in Common?

As a senior negotiator and ISDA manager with Axiom Law, I know first hand the importance of closing a deal and winning big contracts. Starting off in this line of work had its up and downs throughout the business, but overall, the skills that I’ve acquired with over 11 years of experience under my belt really makes what I do worth wild.

By negotiating large-scale deals with international businesses, and local companies, I provide the opportunity for both parties to acquire what they need in any given deal if an offer is placed on the table.

Many people do not understand how both negotiation and business work simultaneously with one another. For starters, many are under the assumption that only FBI agents and police officers use negotiation tactics or are qualified to do to, however this in not the case and a common misconception across the board.

It is important to understand that for small businesses and entrepreneurs, the possibility of someone pulling a “fast one” is high and very likely. Here is where hostage negotiation skills can work in your favor to catch a shady deal before you sign on the dotted line.

Interpreting shifty body language

The commonly used phrase “actions speak louder than words” goes a long way when examining the body language of a potential friend or foe. You want to pay attention to the person’s eyes and whether or not they appear to be shifty when reviewing the deal or going over talking points.

The key here is to look for the truth based on direct or indirect eye contact that the person may be displaying. Although this is not a dead give away to knowing if you are being lied to, it’s a great indicator in the world of negotiation.

The mirroring effect

Ask any great negotiator and they will tell you that the “mirroring effect” works wonders! This technique allows others to open up to you if used correctly.

In any negotiation, you want the other person to reveal any information available in order to make your final decision. Mirroring is simply mimicking of minor body movements, gestures, and language. During your next big meeting, try to see if you can pick up on this skill, and use it to your advantage.  

Although you will not be able to clearly decipher whether or not someone is being honest with you when conducting business, remember to always rely on your gut instincts and professionalism to see you through. With the help of the above tips along with expert knowledge, you’ll be one your way in seeing through the smoke at the next meeting.

---

For more on negotiation and business, follow me on Twitter.

from Manisha Dorawala | Professional Overview http://ift.tt/2msMTLp
via IFTTT