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CFTC Representations: Difference between revisions
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To further ensure the enforceability of excluded and exempt OTC commodity contracts, Congress included the following provision in the CEA: | To further ensure the enforceability of excluded and exempt OTC commodity contracts, Congress included the following provision in the CEA: | ||
{{ | {{quote|§ 25 (a)(4) Contract enforcement between eligible counterparties.— No agreement, <br> contract, or transaction between [[eligible contract participant]]s or persons <br>reasonably believed to be [[eligible contract participant]]s, and no hybrid <br>instrument sold to any investor, shall be void, voidable, or unenforceable, <br>and no such party shall be entitled to rescind, or recover any payment made <br>with respect to, such an agreement, contract, transaction, or instrument under <br>this section or any other provision of Federal or State law, based solely on the <br>failure of the agreement, contract, transaction, or instrument to comply with <br>the terms or conditions of an exemption or exclusion from any provision of this <br>chapter or regulations of the Commission.}} | ||
==[[Eligible Contract Participant]] representation== | ==[[Eligible Contract Participant]] representation== | ||
Accordingly, the '''[[Eligible Contract Participant]]''' (“'''ECP'''”) representation is included in our ISDA Schedule to ensure we can meet the standard of having a “reasonable belief” that our counterparty is an ECP, and therefore the transaction in question is considered to be of a class of transaction to be exempt or excluded from the regulatory framework of the CEA and its primary enforcer, the {{tag|CFTC}}. | Accordingly, the '''[[Eligible Contract Participant]]''' (“'''ECP'''”) representation is included in our ISDA Schedule to ensure we can meet the standard of having a “reasonable belief” that our counterparty is an ECP, and therefore the transaction in question is considered to be of a class of transaction to be exempt or excluded from the regulatory framework of the CEA and its primary enforcer, the {{tag|CFTC}}. | ||