ISDA published a letter that may be used by US banks in connection with the CFTC's cross-border swaps final guidance and policy statement published in July 2013.
The letter, which contains a short checklist, is intended to help US banks provide their counterparties with status representations to determine whether:
A transaction is considered to be entered into with an international branch of a US bank (international transaction).
The letter permits a bank to identify itself as a US bank that is registered with the CFTC as a swap dealer or major swap participant and to represent that a particular foreign branch is the relevant office of the bank for purposes of the swap in question. The letter also permits the bank to represent that it has satisfied the requirements under the final guidance for the swap in question to be deemed a swap entered into by such foreign branch for purposes of the CFTC's swaps regulations.
ISDA also recently published a more general cross-border swaps representation letter for all market participants that is designed to facilitate compliance with the CFTC final guidance for both US and non-US entities, as well as two other publications designed to aid regulators and market participants in complying with CFTC Dodd-Frank derivatives regulations and in developing a cross-border regulatory compliance framework for the global derivatives market. For details, see Legal Update, ISDA Publishes Cross-border Swaps Representation Letter and Methodology.
"ISDA" is a registered trademark of the International Swaps and Derivatives Association, Inc. (ISDA). ISDA is not a sponsor of Practical Law and had no part in the development of this resource.