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Important information

Swap disclosures

 

The information on this Website is for the attention of clients of Macquarie Bank Limited and Macquarie Energy LLC (each and together “Macquarie”). It is being provided to you in connection with Macquarie’s obligations, as a “swap dealer” registered with the U.S. Commodity Futures Trading Commission ("CFTC"), to deliver certain pre-trade disclosures to our counterparties who are entering into a “Transaction” with Macquarie, as defined in the ISDA DF Disclosure.

The General Disclosure document and each of the Product-Specific Disclosure documents (the "ISDA DF Disclosure") provided on this Website under “Material Risk Disclosures” contain important information that Macquarie is required to disclose to you prior to entering into a swap. The format and content of these disclosures was developed by a group of industry participants in the over-the-counter derivatives market, coordinated by the International Swaps & Derivatives Association, Inc. ("ISDA"). Please note that the disclosures may discuss product types or features that are not relevant to your Transaction.

For information on the material characteristics that would generally apply to certain swap transactions that we would execute with you, please view the “Material Economic Terms” section.

By transacting with Macquarie, you are deemed to acknowledge that you have read and accepted the information provided on this Website. The information on this Website may be updated from time to time and so we encourage you to review the content prior to entering into any Transaction.

If you have not yet agreed portfolio reconciliation terms with Macquarie, please view the Portfolio Reconciliation section.

If you have any questions about the information contained on this Website, please contact your Macquarie relationship manager.

Additional Important Macquarie Client Information


Material Economic Terms

The terms provided in the below templates are being disclosed to you to satisfy our obligation, as a swap dealer, to make certain pre-trade disclosures. With respect to each referenced swap type, the terms set out in the templates constitute material characteristics that would generally apply to any transaction of that type that we would execute with you. To the extent that the provisions of any specific trade would differ from the generally applicable terms or if any additional deal-specific terms exist, such specific provisions will be disclosed to you in a trade specific pre-trade disclosure, which should be viewed by you as the controlling pre-trade disclosure with respect to those provisions. The terms of any Transaction that you and we enter into will continue to be documented in a post-trade written confirmation or other agreement evidencing the Transaction. 

Before entering into any Transaction, you should conduct a thorough and independent evaluation of all the terms and risks of the Transaction in light of your particular circumstances and the nature and extent of your exposure to, and willingness to incur, risk. You can evaluate the material risks that will apply to all standard Transactions entered into with us by reviewing the ISDA DF Disclosure, which is available on this Website under the “Material Risk Disclosures” tab. 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.


Material Risk Disclosures

Please find below the ISDA DF Disclosure, which are standard form disclosures published by ISDA. The ISDA DF Disclosure will apply to all standard Transactions between you and Macquarie. Where more specific disclosures of material risks may be necessary with respect to a Transaction between you and Macquarie in addition to the ISDA DF Disclosure, you will be provided with alternative (or supplementary) disclosures suitable for such Transactions. 


Portfolio Reconciliation

Macquarie policy is to engage in portfolio reconciliation for swaps with all counterparties that are affected by Dodd-Frank rules. Portfolio reconciliation benefits both parties by establishing a process to address any discrepancies in their books and records concerning swap transactions: swap portfolio data is shared (either by one party or both parties) and the parties will then consult to resolve any identified differences in material terms and valuations. If you are a Macquarie counterparty which has not yet agreed in writing on the terms of portfolio reconciliation with Macquarie, then we request that you consider doing so. Macquarie counterparties may engage in portfolio reconciliations by selecting Schedule 4 of the ISDA March 2013 DF Protocol (“March Protocol”) and choosing to either “review” or “exchange” portfolio data. A counterparty that elects to “review” portfolio data sent to it by Macquarie may identify any discrepancy with the information in its own books and records and consult with Macquarie to resolve the differences. If “exchange” is selected, then both parties will send portfolio data to each other and compare this information with their books and records.

If you would like more information concerning portfolio reconciliation, please contact your Macquarie relationship manager or email cogmodotcregrecon@macquarie.com.