Foreign Exchange Transactions

space

Dodd-Frank Overview

Product Disclosures & METs

Additional Notifications and Disclosures

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 Foreign Exchange Transactions.  For Foreign Exchange Transactions, the ISDA General Disclosure Statement for Transactions should be read in conjunction with the ISDA Disclosure Annex for Foreign Exchange Transactions.

ISDA Disclosure Annex for Foreign Exchange Transactions 

The ISDA Disclosure Annex for Foreign Exchange Transactions supplements and should be read in conjunction with the ISDA General Disclosure Statement for Transactions. NOTHING IN THE ISDA DISCLOSURE ANNEX FOR FOREIGN EXCHANGE 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 Foreign Exchange Transactions of the operation of Foreign Exchange Transactions and the consequences of various events are in all cases subject to the actual terms of a Foreign Exchange 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 Foreign Exchange Transactions entered into between us. These terms should be read prior to entering into a Foreign Exchange Transactions with us.

Certain rights and obligations of the parties to derivative transactions, including Foreign Exchange Transactions, are contained in Counterparty Relationship Documentation.  Certain agreed upon terms specific to Foreign Exchange Transactions are contained in the Schedule to the ISDA Master Agreement between Jefferies and you.  Please refer to your Schedule to the ISDA Master Agreement, if applicable, for these terms prior to trading. 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 Foreign Exchange Transaction will be contained in the relevant confirmation of the Foreign Exchange 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 Foreign Exchange 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 Foreign Exchange 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 Foreign Exchange 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 Foreign Exchange 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 Foreign Exchange Transaction with any counterparty on any terms.

Certain terms relating to the operation of a Foreign Exchange Transaction are contained in the provisions of the 1998 FX and Currency Option Definitions (“FX Definitions”) and the 2006 ISDA Definitions (the “2006 Definitions”) which are generally incorporated by reference in the relevant confirmation. Below are links to the FX Definitions and the 2006 Definitions. Any supplements to these FX Definitions, 2006 Definitions or other market documents that are distributed by ISDA free of charge are available at: www.isda.org.

Please refer to your Counterparty Relationship Documentation, the confirmation templates, the FX Definitions and the 2006 Definitions as well as the relevant disclosures applicable to Foreign Exchange Transaction prior to engaging in Foreign Exchange Transactions with us. 

1998 FX and Currency Option Definitions

The 1998 FX and Currency Option Definitions, Annex A (September 25, 2000) and the Compendium thereto published by ISDA, the Emerging Markets Traders Association (“EMTA”), and The Foreign Exchange Committee (“FXC”) represent the set of terms, rate sources and other definitions used in connection with Foreign Exchange Transactions. Annex A represents the full and official set of rate source and other definitions. The Compendium to Annex A is a compendium of amendments to Annex A which has been prepared by ISDA, EMTA and FXC (the “Co-sponsors”) solely for the convenience of the market and is updated from time to time to include recent amendments to Annex A. The FX Definitions, Annex A and the official publications by the Co-sponsors of any amendments remain the definitive publications for these various terms. Annex A and the Compendium thereto may also be found on the websites of the Co-sponsors, www.isda.org, www.emta.org, and www.ny.frb.org. Any supplements to these FX Definitions, Annex A or other market documents that are distributed by ISDA free of charge are available at: www.isda.org.

2006 ISDA Definitions

The 2006 ISDA Definitions prepared by ISDA are used in connection with Foreign Exchange Transactions. 

EMTA Template Terms and Confirmation templates

These EMTA Template Terms for Non-Deliverable FX Forward Transactions, Non-Deliverable Currency Option Transactions and Non-Deliverable Cross Currency Transactions (the “Template Terms”) in each case, are the terms currently recommended by EMTA for forwards, options and cross currency transactions for each currency pair referenced therein. Please note that the Template Terms are not intended to be a substitute for a confirmation, but are intended to reflect market consensus on material non-trade terms that may be incorporated into a trade confirmation, unless otherwise agreed by the parties. We may incorporate the Template Terms for any currency pair into trade confirmations or may agree on different terms. Please see the confirmation templates found in the Exhibits to the FX Definitions in the link provided above.

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.