DODD-FRANK DISCLOSURES Regulating Swap Transactions by US Persons

Here’s how we’re adhering to regulatory requirements regarding Swap Dealers

Introduction

Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, prior to entering into a swap transaction, Standard Chartered Bank, as a Non-US Swap Dealer, must provide several disclosures to a US Person who is not a “Swap Dealer”, “Major Swap Participant”, “Security Based Swap Dealer” or “Major Security Based Swap Participant”.

The disclosures contained on this web page may not be relevant to all recipients. These disclosures are only required to be made where all the following circumstances apply:

(i) You are a "U.S. person", as defined by the Commodity Futures Trading Commission (“CFTC”);

(ii) You are not a “Swap Dealer", "Major Swap Participant", "Security Based Swap Dealer", or "Major Security Based Swap Participant”; and

(iii) You are entering into or contemplating entry into a transaction with Standard Chartered Bank that constitutes a "swap".
If any of the foregoing circumstances do not apply, then the disclosures on this web page are not relevant to you and you need not read any further. If the above circumstances do apply, then you should read the following documents carefully:

General Disclosures and Product Specific Disclosures

The International Swaps and Derivatives Association (“ISDA”) has created standard industry documentation, such as general and product specific risk disclosures to capture general risks of swap transactions. These disclosures describe generally the material characteristics, material risks, and typical material incentives and conflicts of interest. These swap transactions may relate to one or more of the following classes of reference assets: interest rates, foreign exchange rates and currencies, credit instruments, asset-backed instruments, equities and commodities. The latest published documents are attached below:

(Documents updated as of 9 September 2019)

This webpage will be updated regularly with various risk disclosures published by ISDA or Standard Chartered Bank. Please bookmark this page and check back frequently for any updates.

Material Economic Terms Disclosures

This Disclosure Statement describes the manner in which the terms of any Transaction that Standard Chartered Bank (“we” or “us”) may enter into with you will be determined. The term “Transaction” has the meaning set forth in the above ISDA General Disclosure Statement for Transactions that we have provided to you.

Before entering into any Transaction, you should conduct a thorough and independent evaluation of the terms of the Transaction in light of your particular circumstances and the nature and extent of your exposure to, and willingness to incur, risk. You should also consider whether the Transaction is appropriate for you in light of your experience, objectives, financial and operational resources and other relevant circumstances. Unless expressly agreed in writing, we are not providing you with legal, financial, tax, accounting or other advice in connection with any Transaction.

The terms of any Transaction that you and we enter into will be set forth in the confirmation or other agreement evidencing the Transaction, including any terms incorporated by reference therein. Subject to the exceptions described below, any Transaction that you and we enter into will have the terms that you and we expressly agree upon (orally, via email or in any other manner) in connection with the Transaction and other terms determined as follows:

  1. Industry or market standard or convention. If a term, as established by industry or market practice or convention, is reasonably expected to be widely known by market participants, then the Transaction shall include such term, subject to any express agreement between you and us in connection with the Transaction.
  2. Specified prior transaction, form confirmation or terms spreadsheet. If we notify you that the Transaction will have the terms set forth in a specified prior transaction, form confirmation or terms spreadsheet, the Transaction will have such terms, subject to any express agreement between you and us in connection with the Transaction.
  3. Master confirmation agreement. If (2) does not apply and you and we are party to a master confirmation agreement that governs the Transaction, the Transaction will have the terms set forth in the master confirmation agreement, subject to any express agreement between you and us in connection with the Transaction.
  4. Unspecified prior transaction. If neither (2) nor (3) applies and you and we have previously entered into a transaction of the same type, the Transaction will have the terms set forth in the most recent transaction of the same type that you and we entered into, subject to any express agreement between you and us in connection with the Transaction.
  5. Unspecified form confirmation or terms spreadsheet. If none of (2), (3) or (4) applies and the Transaction is of a type that is covered by a form confirmation and/or a terms spreadsheet that is available on this web page, then the Transaction will have the terms set forth in the form confirmation and/or terms spreadsheet, as applicable, subject to any express agreement between you and us in connection with the Transaction. In the event of any inconsistency between a form confirmation and a terms spreadsheet that relate to the same type of transaction, the terms set forth in the terms spreadsheet control.

The description above of the manner in which the terms of any Transaction that you and we enter into will be determined is subject to the following important exceptions:

a) If you and we enter into a Transaction that is cleared through a clearinghouse or executed through a trading platform that prescribes the terms of the Transaction, the Transaction will have the terms specified by the applicable clearinghouse or trading platform and, subject to the rules of the clearinghouse or trading platform, any additional terms that you and we expressly agree upon in connection with the Transaction.

b) If you and we enter into a Transaction for “give-up” to a third party, the terms of the Transaction will be subject to the terms of any agreement with that third party.

Important notice

This web page contains links to forms of confirmations and spreadsheets of material economic terms and ISDA Derivative Definitions relating to a variety of types of transactions (“Transactions”) that we may enter into with counterparties from time to time. Any confirmation or other documentation we directly provide to you in respect of an actual or potential Transaction will supersede the information on this web page and, to the extent inconsistent, such confirmation or other documentation will control. In addition, the agreed upon terms of any Transaction that we enter into with you will be set forth in the confirmation or other agreement that you and we enter into with respect to that Transaction and may differ materially from the terms set forth in the forms and spreadsheets available on or through this web page. By making this web page available, we are not indicating that we are willing to enter into any Transaction with any counterparty on any terms.

EMTA, Template Terms for Non-Deliverable FX Forward Transactions, Non-Deliverable Currency Option Transactions and Non-Deliverable Cross Currency Transactions:

http://www.emta.org/ndftt.aspx

The external URLs provided below include links to the standard pricing pages for precious metals, as well as information regarding standard market practices for "good delivery”.

https://www.lppm.com/
http://www.lbma.org.uk/

The information below are Standard Chartered Bank’s forms of confirmations specific to Foreign Exchange Derivatives Products: Foreign Exchance Option and Foreign Exchange Forward.

For the ISDA Definitions specific to Foreign Exchange Derivatives, please refer to ISDA Foreign Exchange Derivatives Definitions & Supplements section of this page.

The information below are Standard Chartered Bank’s forms of confirmations specific to Rates Derivatives Products: (Cap/Floor/Collar), Interest Rate Swap or Cross Currency Swap, Forward Rate Agreement, Self-Compounding Overnight Interest Rate Swap, Swaption or Swaption Straddle, Mark to Market CCY Swap and U.S. Treasury Locks.

For the ISDA Definitions specific to Rates Derivatives, please refer to ISDA Rates Derivatives Definitions & Supplements section of this page.

The external URLs provided below include links to the standard pricing pages for precious metals, as well as information regarding standard market practices for "good delivery”.

https://www.lppm.com/
http://www.lbma.org.uk/

The information below are Standard Chartered Bank’s forms of confirmations specific to Commodities Derivatives Products: Commodity Option, Commodity Swaption, Commodity Swap and Commodity Basis Swap.

For the ISDA Definitions specific to Commodities Derivatives, please refer to the ISDA Commodity Derivatives Definitions & Supplements section of this page.

The information below are Standard Chartered Bank’s forms of confirmations specific to Equities Derivatives Products: Accumulator Swap, Decumulator Swap and Total Return Swap (TRS).

For the ISDA Definitions specific to Equities Derivatives, please refer to the ISDA Equities Derivatives Definitions & Supplements section of this page.

ISDA Definitions & Supplements to the ISDA Definitions

ISDA holds copyright on certain ISDA documents (“ISDA Content”) and such works may not be reproduced or distributed without ISDA’s written permission except the ISDA Master Agreements, ISDA Credit Support Documents and standardized general and product specific risk disclosures published by ISDA, which may be reproduced and distributed solely for use in documenting specific commercial transactions. In no event may any copyright or trademark notice be removed.

Use of ISDA Content should be undertaken only after securing appropriate legal advice on its provisions. ISDA makes no warranty, express or implied, concerning the respective instruments’ suitability for use in any particular transaction and bears no responsibility or liability whatsoever, whether in tort or in contract, in respect of any use of these instruments.

ISDA, its officers, directors, employees, subcontractors, agents, successors or assigns (collectively “Covered Parties”) shall not be liable to Standard Chartered Bank or any of its counterparties (each a “Client”) for any loss, injury, claim, liability or damage of any kind whatsoever resulting from, arising out of or in any way related to:

(a) any errors in or omissions from the ISDA Content;

(b) the Client’s use of the ISDA Content;

(c) the Client’s use of any equipment or software in connection with the ISDA Content; or

(d) any delay or failure in performance.

The aggregate liability of the Covered Parties to a Client in connection with any other claim arising out of or relating to the ISDA Content shall not exceed $500.00, which right shall be in lieu of all other remedies that the Client may have against ISDA. In no event shall the Covered Parties be liable for any special, indirect, incidental or consequential damages of any kind whatsoever (including, without limitation, attorneys’ fees), lost profits or lost savings in any way due to, resulting from or arising in connection with the ISDA Content contained therein, regardless of any negligence of the Covered Parties.

ISDA Definitions & supplements to the ISDA Definitions

The files herein are password protected, please contact your Standard Chartered Bank representative for access.

If you have your password, please enter it here:

Pre-Trade Mid-Market Marks; Post-Trade Daily Marks

The following documents are provided in connection with any (i) pre-trade mid-market marks and (ii) daily post-trade mid-market marks delivered for any swap that Standard Chartered Bank has entered into, or may enter into, with you from time to time.

Scenario Analysis

We hereby notify you that prior to entering into a swap with us that is not available for trading on a designated contract market or swap execution facility, you may request and consult with us on the design of a scenario analysis to allow you to assess your potential exposure in connection with such swap. If you wish to request a bespoke analysis beyond what is contained in the Standard Chartered Bank’s standard scenario analysis, you should contact our usual sales contact who will assist you accordingly. Any such requests will be handled appropriately in accordance with our internal processes consistent with the relevant CFTC rules.

The obligation to provide a scenario analysis does not apply to a client that is a Swap Dealer, Major Swap Participant, Security Based Swap Dealer, or Major Security Based Swap Participant.

Get in touch

Got a question? View our FAQs or get in touch with us by phone, email or social media

Contact us