Dodd Frank Disclosures

Dodd Frank Disclosures

As a “swap dealer” registered with the Commodity Futures Trading Commission (“CFTC”), Westpac Banking Corporation (ABN 33 007 457 141) must provide disclosures of material information to certain U.S counterparties other than swap dealers and major swap participants under the requirements of CFTC regulation 23.431.

 

You should note that any confirmation or other documentation we directly provide to you in respect of an actual swap will supersede the information on this website and, to the extent inconsistent, such confirmation or other documentation will take precedence. 

 

By transacting with Westpac, you are deemed to acknowledge that you have read and accepted the information provided on this Website. The information on this Website may be updated from time to time and so we encourage you to review the content prior to entering into any Transaction.

Dodd Frank Material Disclosures

The General Disclosure Statement and each of the Annexes (together the “DF Disclosure”) published by the International Swaps and Derivatives Association, Inc. (“ISDA”), provide a description of the material characteristics, risks, and material incentives and conflicts of interest with respect to these swap transactions. These can be accessed using the links below.

General Disclosure Statement (PDF 532KB)

Interest rate Derivatives Disclosures Annex (PDF 153KB)

FX Derivatives Disclosure Annex (PDF 64KB)

Credit Derivatives Disclosure Annex (PDF 383KB)

Commodity Derivatives Disclosure Annex (PDF 271KB)

Asset Backed Securities Disclosure Annex (PDF 71KB)

IBOR Alternative Reference Rates Disclosure (PDF 93KB)

 

In addition to these disclosures, additional disclosures detailing specific risks of a particular swap may be disclosed to you by us prior to you entering into the swap with us.

The International Swaps and Derivatives Association, Inc. ("ISDA") holds copyright on certain ISDA documents and these 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.

Your use of the DF Disclosure should be undertaken only after securing appropriate legal advice on its provisions and neither Westpac nor ISDA makes any representation, warranty or assurance, express or implied, concerning the suitability of the DF Disclosure for use in any particular transaction and bears no responsibility or liability whatsoever, whether in tort or in contract, in respect of any use of the DF Disclosure.

Use of ISDA documentation to document transactions should be undertaken only after securing appropriate legal advice on its provisions. ISDA makes no warranty, express or implied, concerning the respective instruments' suitability for use in any particular transaction and bears no responsibility or liability whatsoever, whether in tort or in contract, in respect of any use of these instruments.

Material Economic Terms (METs) Disclosures

The tables below set out the minimum METs that would generally apply to any swap of that type that we enter into with you. The METs may be supplemented by transaction-specific material terms which may be communicated to you prior to trading.
 

Before entering into any swap transaction, you should conduct a thorough and independent evaluation of the terms of the transaction in light of your particular circumstances and the nature and extent of your exposure to, and willingness to incur, risk.  You should also consider whether the transaction is appropriate for you in light of your experience, objectives, financial and operational resources and other relevant circumstances.  Unless expressly agreed in writing, we are not providing you with legal, financial, tax, accounting or other advice in connection with any swap transaction.

 

Material Economic Terms – Commodity (PDF 520KB)
Material Economic Terms – Credit (PDF 517KB)
Material Economic Terms – Foreign Exchange (PDF 519KB)
Material Economic Terms – Interest Rate (PDF 522KB)

Pre-Trade Mid-Market Marks

With respect to certain swaps executed by you with us, Westpac is required to provide you with a pre-trade Mid-Market Mark pursuant to CFTC regulation 23.431(a)(3)(i) (‘DF Mid”).  The DF Mid does not include amounts for profit, credit reserve, hedging, funding, liquidity, or any other costs or adjustments.

 

The DF Mid is provided for information only, not:

• the price at which we agree to enter into, replace or terminate the swap;
• the basis for margin calls and maintenance of collateral; or
• the value of the swap that is marked on our books and records.

 

The DF Mid may be provided:

• in writing via electronic mail, Bloomberg chat or any other means of electronic communication;
• orally (when applicable), whether over the telephone (or any other similar communication device) and followed up with a post-trade written confirmation via chat or email (or other means of electronic communication); or
• by the electronic platform on which you may execute your swap transactions (such as in the case of certain FX execution platforms). For Bloomberg “FXGO”, you will need to configure Bloomberg to provide you with access to mid-price information, which will be a Bloomberg generated mid.

 

Where we do not provide a mid-market number, you may infer the DF Mid from an average of the bid and offer prices that are quoted to you at the time of the price request.

 

A swap’s value may not be readily observable in the market and is therefore often subjective and based on numerous assumptions and methodologies of each market participant. Accordingly, our DF Mid may vary significantly from those provided by other market participants for a swap.

 

We make no representation or warranty that the DF Mid is suitable for complying with financial or tax reporting obligations, determining net asset value, computing any tax liability or for any other purpose, nor that it represents the best market price.  We suggest you discuss such matters with your own financial, legal, tax, accounting and other professional advisors.  Except as otherwise agreed, we disclaim all liability for use or reliance on the DF Mid, whether losses or damages are direct, indirect, incidental or consequential, even if Westpac is advised of their possible use.

Scenario Analysis

Prior to entering into a swap that is not made available for trading on a designated contract market or swap execution facility, you may request and consult on the design of a scenario analysis pursuant to CFTC regulation 23.431(b). Contact your usual Westpac relationship manager for further information.

Daily Mark

Pursuant to CFTC regulation 23.431(d):

• For cleared swaps, you have the right to receive the Daily Mark from the relevant derivatives clearing organization upon request,
• For uncleared swaps, Westpac will provide you with a Daily Mark. Your Daily Marks will be made available on the following webpage; https://dailymark.integrate.net.au/DTIP/DailyMark/
   

Westpac’s methodology for the calculation of the Daily Mark is available below:

Daily-Mid-Market-Marks (Daily Marks) (PDF 208KB)