Disclosure of Material Information for FX Transactions
Material Risks of Foreign Exchange ("FX") Transactions
The General Disclosure Statement for Transactions, together with the Disclosure Annex for Foreign Exchange Transactions, contain important information and disclosures about the associated material risks, characteristics, incentives and conflicts of interest that we as a registered swap dealer are required to disclose or furnish to you in advance of transacting. Therefore, we urge you to review carefully such information and disclosures prior to entering into any Swap.
Material Characteristics of Foreign Exchange Transactions
Material Economic Terms:
When we bilaterally negotiate the terms of a Swap with you, information about the material operational and economic terms of a Swap will generally be disclosed and discussed in the process of such negotiation. If you transact with us through an electronic platform, disclosure of the material operational and economic terms will be displayed on, or entered into, the terminal or screens through which the Swap is transacted. Additional information concerning material operational and economic terms of Swaps is included through the links in the sections below.
The terms of any FX Transaction that we may enter into with you will generally be determined as described in this statement. Transaction Terms
Standard forms of FX Transaction confirmations are available here.
- Foreign Exchange Forward Confirmation
- Foreign Exchange Swap Confirmation
- Foreign Exchange Non-Deliverable Forward Confirmation
- Foreign Exchange Time Option Confirmation
- Foreign Exchange Vanilla Option Confirmation
- Foreign Exchange Exotic Option Confirmation
Rights and Obligations of the Parties:
The rights and obligations of the parties during the term of an FX Transaction, as well as operational terms, will be included in the documentation that governs the FX Transaction.
- ISDA Master Agreements, Credit Support Annexes, Commodity Definitions, User’s Guides and related documents
- ISDA Protocols
- KeyBank National Association Terms of Business for Swap Transactions (Please contact your KeyBank Foreign Exchange Sales Representative for a copy of this document.)
- KeyBank National Association Foreign Exchange Service Agreement (Please contact your KeyBank Foreign Exchange Sales Representative for a copy of this document.)
Pre-trade mid-market mark:
We will, to the extent required by applicable law, provide the pre-trade mid-market mark of any prospective Swap between you and us pursuant to CFTC Regulation §23.431(a)(3)(i) as follows: If you have agreed to receive oral disclosure (with written confirmation to follow post-trade) of pre-trade mid-market marks of any Swaps, then we will provide such oral disclosure followed by written disclosure. If you have not agreed to receive such oral disclosure, then we will provide pre-trade mid-market marks of any proposed Swap in writing.
Note, however, that we will not provide pre-trade mid-market marks in respect of any Swap that is an eligible foreign-exchange swap, forward or option transaction, or any other Swaps for which the CFTC provides no-action or other relief from CFTC Regulation §23.431(a)(3). Click here for disclosure regarding terms of, and assumptions underlying, pre-trade mid-market marks. Pre-Trade Mid-Market Marks
Material Conflicts of Interest and Incentives
DCOs, swap execution facilities and trading platforms may from time to time have in place arrangements that provide their members or participants with volume, market-making or other discounts or credits, may call for members or participants to pre-pay fees based on volume thresholds, or may provide other incentives or arrangements that are intended to encourage market participants to trade on or direct trades to that entity. We may participate in and obtain financial benefits from such incentive programs.
We will provide you with a daily mid-market mark (the "Daily Mark") for each un-cleared Swap executed between us through Key2FX. If you need a password and log-in information for, or assistance with, accessing Key2FX and your Daily Mark page, please call 1-800-990-7647.