No changes should be made to the internal model used for the internal models approach of the Framework Agreement on Networks1, unless the change is not significant. Significant changes to such a model require a change in the rationale for the approach of the internal model of the framework compensation agreement. Material importance shall be measured in relation to the model as it was at the time when the approach authorisation of the internal model of the framework compensation agreement was originally granted or, at a later date specified in the framework agreement for compensation for internal models, the authorisation shall be received for that purpose. If an entity intends to make significant changes to such a model, it must immediately inform the competent regulatory authority. BIPRU 5.6.16 R to BIPRU 5.6.28 G apply to an entity that has a framework clearing agreement that has a framework clearing agreement and determines the calculation of the impact of credit risk mitigation under the framework clearing agreement for internal models. The framework agreement and schedule set out the grounds on which either party may force the conclusion of covered transactions due to the occurrence of a termination event by the other party. Standard termination events include defaults or bankruptcy. Other termination events that can be added to the calendar include a credit rating downgrade below a certain level. An ISDA framework agreement is the standard document that is regularly used to regulate commercial derivatives transactions. Foreign exchange and interest rate swap markets have experienced impressive growth in recent decades.

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