This Utility Special Entity Representation Letter will generally be sought by an entity engaged in certain derivatives trading activity and documenting its due diligence in relation to Swap Dealer/Major Swap Participant registration requirements.
Solely for purposes of determining whether an entity’s Swap dealing activity with Special Entities has exceeded the $25 million aggregate gross notional amount threshold for Swap Dealer registration set forth in CFTC Regulation 1.3 (ggg)(4)(i)A) for Swaps in which the counterparty is a Special Entity, CFTC Regulation 1.3 (ggg)(4)(i)(B)(1) allows an entity to exclude “utility operations-related swaps” in which the Special Entity counterparty is a “utility special entity.”
In order to allow an entity to rely on the foregoing exclusion of “utility operations-related swaps” in which the Special Entity is a “utility special entity” under CFTC Regulation 1.3 (ggg)(4)(B)(1), the Special Entity can provide the representations set forth in the IECA’s Utility Special Entity Representation Letter (“Representation Letter”’ see the form attached as Exhibit A).
This tool allows IECA members and other market participants to provide to their counterparties with information needed to assess how the Canadian reporting requirements may apply to them.
The people that deserve special thanks are Priscilla Bunke; Chair of the IECA Canadian CLEG Derivatives Regulatory Working Group; Zoltan Nagy-Kovacs; Kari Olesen; Phil Lookadoo; Kara Levis and Jerry Jeske who all despite their busy schedules worked on this drafting sub-committee of the working group to put together this tool.
- IECA Irrevocable Standby Letter of Credit Form
- IECA Letter of Credit Practice Tips for Standby Letters of Credit Subject to ISP98
- IECA Irrevocable Standby Letter of Credit Provisions to Paragraph 13 of the ISDA ® 1994 Credit Support Annex
- IECA Irrevocable Standby Letter of Credit Provisions to Paragraph 13 of the ISDA ® 2016 Credit Support Annex for Variation Margin (VM)
This tool is a standardized irrevocable standby Letter of Credit form for industry wide use. The supporting documentation includes practice tips for using standby Letters of Credit and recommended provisions for Paragraph 13 of the 1994 ISDA® Credit Support Annex and Paragraph 13 of the 2016 ISDA ® Credit Support Annex for Variation Margin (VM).
Any company that uses and/or accepts Letters of Credit as a form of collateral will benefit from using the IECA documentation. The IECA Letter of Credit form was drafted and prepared by a diverse group of experienced energy professionals including some of the industry’s top lawyers, credit and finance professionals. The IECA Letter of Credit form was prepared specifically for energy companies and the way Letters of Credit are used in the energy industry.
The people that deserve special thanks are Doug Lanzo, Chair of the IECA Letter of Credit Working Group, Ginger Price, Geoffrey Heffernan, Jeremy Weinstein, KC Hairston, John Evenstad, Mark Sherrill, Craig Enochs, Ryan Evans, CJ Lee, Delia White, Karen Scott, Kari Olesen, Todd Rodgers, Joseph Yu and Phil Lookadoo.
The IECA Canadian Derivatives Regulatory Working Group, chaired by Priscilla Bunke of Dentons Canada, is pleased to announce the IECA Canadian Derivatives Trade Reporting Designation and Amending Agreement.
Section 25(1)(d) of Trade Reporting Rules and proposed multilateral instrument in certain Canadian provinces, in Quebec - Autorité des marchés financiers (AMF) Regulation 91-507 ; in Manitoba- the Manitoba Securities Commission’s (MSC) Rule 91-507 and in Alberta, British Columbia, Nova Scotia, New Brunswick and Saskatchewan, the proposed Canadian Securities Administrators (CSA) multilateral instrument 96-101 respectively provide that “if none of paragraphs (a) to (c) apply to the transaction and the counterparties have, at the time the transaction occurs, agreed in writing that one of them will be the reporting counterparty, the counterparty determined to be the reporting counterparty under the terms of that agreement”…[Emphasis added]
Pursuant to this subsection, the IECA CLEG Canadian Derivatives Drafting sub-working group has prepared the IECA Canadian Derivatives Trade Reporting Designation and amending agreement for usage by market participants to determine who the reporting counterparty to a derivative transaction would be in certain circumstances as provided in the subsection.
The people who deserve special thanks are Kari Olesen; Phil Lookadoo; Zoltan Nagy-Kovacs and Priscilla Bunke, Chair of the IECA CLEG Canadian Working Group. Other members of the drafting team are Kara Levis and Jerry Jeske.
This tool is an in-depth analysis of industry-standard credit support agreements, and the differences between those contracts. Individuals in commercial, credit and legal roles will find this a helpful resource in identifying which credit support agreement provides your company with the most protection, and which contract aligns most closely with the credit needs of your business.
The people that deserve special thanks are Craig Enochs, Chair of the Working Group, Alan Babp, Ryan Evans, Geoffrey Heffernan, Michelle Owens, Tara Liscombe, Kevin Page, James Pappenfus, Ginger Price, Lacey Sedlacek, and Chris York. The other members of the group were Nicole Rigueira, Zackary Starbird, Jeremy Weinstein and K.C. Hairston.