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Eligible Contract Participant: Difference between revisions
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'''Eligible Contract Participant''' is a concept under the US [[Commodity Exchange Act]]. | '''Eligible Contract Participant''' is a concept under the US [[Commodity Exchange Act]]. Relevant also should be clearing futures for US persons under a Part 30 Exemption, because it determines whether or not you have to hold the US customer's cash margin as client money. (see https://www.handbook.fca.org.uk/handbook/CASS/12/2.html) | ||
===Definition=== | ===Definition=== | ||
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==The Alternative “Factual Rep"== | ==The Alternative “Factual Rep"== | ||
Every now and then you come across a counterparty in some far-flung backwater (continental Europe, for example) who expresses bafflement or even affrontery at the thought of subjugating itself to the law of the Americans. That this might happen takes some Americans by surprise. Then again, that it takes Americans by surprise takes everyone else by surprise. | Every now and then you come across a counterparty in some far-flung backwater (continental {{tag|Europe}}, for example) who expresses bafflement or even affrontery at the thought of subjugating itself to the law of the [[:Category:US Securities Regulation|Americans]]. That this might happen takes some [[U.S. Attorney|Americans]] by surprise. Then again, that it takes [[U.S. Attorney|Americans]] by surprise takes everyone ''else'' by surprise. It is a fruitless task trying to get the bottom of who is most justifiably surprised (but, for the record, it’s us). No matter: there is a sensible compromise. Simply have that counterparty give a rep to the factual content of the ECP rep. For example: | ||
:“Each Party represents and warrants to the other Party that [DELETE ONE OR OTHER] it has, or is guaranteed by an entity that has, assets exceeding $10 million] [its net worth exceeds $1 million and it is entering into the contract in connection with its business].” | |||
==See Also== | ==See Also== | ||
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*[http://www.access.gpo.gov/uscode/title7/chapter1_.html Commodities Exchange Act] | *[http://www.access.gpo.gov/uscode/title7/chapter1_.html Commodities Exchange Act] | ||
*[[Commodities]] | *[[Commodities]] | ||
*[[ | *[[CFTC Representations]] | ||
{{C2|Commodities Regulation|US Regulators}} | {{C2|Commodities Regulation|US Regulators}} | ||