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CFTC Representations: Difference between revisions
→Eligible Commercial Entity representation
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[[ECE]]s are subset of [[ECP]]s including, among others, entities who have a demonstrable ability to make or take delivery of the underlying [[commodity]], or to incur risk in addition to price risk related to the [[commodity]], or are dealers regularly providing risk management or hedging services to or engaging in market-making activities with other eligible commercial entities. Because Barclays does not have systems to monitor and track which clients have made the representation and which have not, the representation must be included in all {{tag|ISDA}}s. | [[ECE]]s are subset of [[ECP]]s including, among others, entities who have a demonstrable ability to make or take delivery of the underlying [[commodity]], or to incur risk in addition to price risk related to the [[commodity]], or are dealers regularly providing risk management or hedging services to or engaging in market-making activities with other eligible commercial entities. Because Barclays does not have systems to monitor and track which clients have made the representation and which have not, the representation must be included in all {{tag|ISDA}}s. | ||
===[[ECE]] Rep wording=== | ===[[ECE]] Rep wording=== | ||
{{quote'''Additional Representations'''. Each party will be deemed to represent to the other party on each date on which a Transaction is entered into that: ... | |||
... it is an “[[eligible commercial entity]]” as such term is defined in the Commodity Exchange Act, as amended 7 U.S.C. §1(a)(11).}} | |||
This one is harder to boil down to a factual rep, but note that it may be removed as a result of [[Dodd Frank]]. | This one is harder to boil down to a factual rep, but note that it may be removed as a result of [[Dodd Frank]]. | ||