Commodity Derivative Transactions
- Transaction Risk Information, Disclosures and Documents
- Transaction-Specific Pre-trade Disclosure
- Conflicts of Interest
- Daily Marks
- Transaction Reporting
- Future Regulatory Developments
- ISDA Protocols
- Recording of Telephone Lines
Disclosures
ISDA General Disclosure Statement for Transactions
The ISDA General Disclosure Statement for Transactions describes generally: (1) the material characteristics of a wide variety of derivative transactions that we may conduct with you; (2) the material risks of such transactions; and (3) typical material incentives and conflicts of interest that we may have with respect to such transactions. The ISDA General Disclosure Statement for Transactions is supplemented with product specific disclosures contained in annexes, including the ISDA Disclosure Annex for Commodity Derivative Transactions. For Commodity Derivative Transactions, the ISDA General Disclosure Statement for Transactions should be read in conjunction with the ISDA Disclosure Annex for Commodity Derivative Transactions.
ISDA Disclosure Annex for Commodity Derivative Transactions
The ISDA Disclosure Annex for Commodity Derivative Transactions supplements and should be read in conjunction with the ISDA General Disclosure Statement for Transactions. NOTHING IN THE ISDA DISCLOSURE ANNEX FOR COMMODITY DERIVATIVE TRANSACTIONS AMENDS OR SUPERSEDES THE EXPRESS TERMS OF ANY TRANSACTION BETWEEN YOU AND US OR ANY RELATED GOVERNING DOCUMENTATION. Accordingly, descriptions in the ISDA Disclosure Annex for Commodity Derivative Transactions of the operation of Commodity Derivative Transactions and the consequences of various events are in all cases subject to the actual terms of a Commodity Derivative Transaction executed between you and us and its governing documentation.
Material Economic Terms
Below are the Material Economic Terms that Jefferies is required to provide to you pursuant to CFTC Rule 23.431 in relation to Commodity Derivative Transactions entered into between us. These terms should be read prior to entering into Commodity Derivative Transactions with us.
Certain rights and obligations of the parties to derivative transactions, including Commodity Derivative Transactions, are contained in Counterparty Relationship Documentation. Please click on the Transaction Risk Information, Disclosures and Documents under Dodd-Frank Overview on the left to find certain forms of Counterparty Relationship Documentation that may be applicable to your relationship with Jefferies.
The terms of any specific Commodity Derivative Transaction will be contained in the relevant confirmation of the Commodity Derivative Transaction between Jefferies and you. Confirmations are generally entered into between Jefferies and a counterparty post-trade. Below are links to forms of confirmations relating to a variety of Commodity Derivative Transactions that Jefferies 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 Commodity Derivative Transaction will supersede the information on this web page and, to the extent inconsistent therewith, such confirmation or other documentation will control. In addition, the agreed upon terms of any Commodity Derivative 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 Commodity Derivative Transaction and may differ materially from the terms set forth in the forms 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 Commodity Derivative Transaction with any counterparty on any terms.
Certain terms relating to the operation of a Commodity Derivative Transaction are contained in the provisions of the 2005 ISDA Commodity Definitions (“Commodity Definitions”) and the 2006 ISDA Definitions (the “2006 Definitions) which are generally incorporated by reference in the relevant confirmation. Below are links to the Commodity Definitions and the 2006 Definitions. Any supplements to these Commodity Definitions, the 2006 Definitions or other market documents are available for purchase from ISDA at: www.isda.org.
Please refer to your Counterparty Relationship Documentation, the confirmation templates, the Commodity Definitions and the 2006 Definitions as well as the relevant disclosures applicable to Commodity Derivative Transactions prior to entering into Commodity Derivative Transactions with us.
2005 ISDA Commodity Definitions
The 2005 ISDA Commodity Definitions prepared by ISDA including the Sub-Annexures represent the set of terms, definitions and Commodity Reference Prices used in connection with Commodity Derivative Transactions.
In the Exhibits to the Commodity Definitions, please find the confirmation templates. The terms represented in the confirmation templates are static terms, the terms which will remain the same for all Commodity Derivative Transactions unless agreed otherwise by the parties. The dynamic terms are the terms which are to be provided by Jefferies orally to you at the time of a trade and confirmed in writing in a confirmation thereafter.
The 2006 ISDA Definitions prepared by ISDA are used in connection with Commodity Derivative Transactions.
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. ISDA makes no warranty, express or implied, concerning the suitability of ISDA documentation for use in any particular transaction. You should only enter into transactions after receiving appropriate legal advice with respect to the provisions of ISDA documentation as ISDA bears no responsibility or liability whatsoever, whether in tort or contract, in respect of any such use. ISDA, its officers, directors, employees, subcontractors, agents, successors or assigns (collectively “Covered Parties”) shall not be liable to you 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) your use of the ISDA Content; (c) your 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 you 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 you 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.
Links to websites provided herein are for your reference and convenience. By clicking on the links to those certain websites you leave the Jefferies website and acknowledge that Jefferies has no control over the content of those websites or the continued availability of materials you may find there.