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Institutional / Financial markets / Dodd-Frank information

Commonwealth Bank’s approach

As a Bank that provides a wide range of over-the-counter (OTC) derivatives products to counterparties that are US persons or in-scope categories of non-US persons, Commonwealth Bank of Australia (“CBA”) is currently registered as a Swap Dealer.

CBA is a member of the National Futures Association (NFA ID 0249150). For further information, please refer to the below BASIC link:

https://www.nfa.futures.org/BasicNet/

CBA’s status as a Swap Dealer triggers a number of obligations. CBA is required to:

  • ensure that our counterparties are aware of certain matters;
  • collect certain information from our U.S. counterparties;
  • provide certain information to U.S. counterparties; and
  • modify the terms upon which we do business with our counterparties.

Like most swap market participants, CBA generally meets the above requirements by:

  • adhering to the latest ISDA Dodd-Frank Protocols (the “Protocols”);
  • exchanging information with our counterparties using the ISDA Amend / Counterparty Manager online documentation portal.

If you are not familiar with ISDA Amend portal and how it will work, please email us at [email protected]

What our counterparties need to do

If you are a U.S. counterparty of CBA entering into swap transactions, you need to execute additional documentation included in the Protocols. Even if you have not already executed an ISDA Master Agreement you can still adhere to the Protocols, which facilitates compliance by allowing market participants to (i) supplement the terms of existing master agreements under which the parties may execute swaps, or (ii) enter into an agreement to apply selected Dodd-Frank compliance provisions to their trading relationship in respect of swaps.

Executing the Protocols is a three-step process that you can complete online. You will need to:

  1. Submit an adherence letter. This is an acknowledgement that you agree to adhere to the latest Protocols. This letter is a legal document and should be given appropriate consideration before making a commitment. If necessary, consult your legal adviser. Your adherence letter will be visible to all visitors to the ISDA website.
  2. Complete the questionnaires. The questionnaires covers all the information you need to provide, including identity, address and Dodd-Frank classification (e.g. Swap Dealer, Special Entity, Financial Entity, Exempt End User).
  3. Use ISDA’s protocol management platform (such as ISDA Amend / Counterparty Manager) to exchange information. Once you have entered the adherence letter and questionnaire into the relevant ISDA platform, you can use the portal to exchange with CBA the information both parties need to fulfil our respective Dodd-Frank obligations.

To execute documents or for further information on the Protocols, visit the International Swaps and Derivatives Association website and review the applicable protocols and adherence materials.

Adherence fees may apply. The cost of executing a protocol depends on the applicable ISDA protocol and ISDA’s current fee schedule. Please refer to ISDA’s website or your legal adviser for the most up-to-date fee information..

For those acting under a third-party relationship (e.g. Custodians), your authorised third-party agent may execute this documentation on your behalf.

In addition to the requirements outlined above, Dodd-Frank requires all counterparties to a swap to obtain a Legal Entity Identifier (LEI). CBA is obliged to use this identifier on the trade reports we provide to the U.S. regulator as part of our compliance with Dodd-Frank. You can get your LEI from a GLEIF accredited Local Operating Unit (see GELIF’s “Get an LEI” webpage). You will need to have a LEI to complete your Protocol questionnaire.

It is important to follow the steps above to ensure uninterrupted trading relationships between yourself and CBA.

We strongly recommend that all parties obtain their own specialist advice (specific to their own particular circumstances) on how the Dodd-Frank Act is affecting them.

Contact us

If you have any questions, please contact your CBA Relationship Executive or email us.

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Dodd-Frank Act Disclosures

Related information

Things you should know

  • This disclosure is provided for information purposes only. It is not intended to be a comprehensive description of all risks or regulatory requirements applicable to swap transactions and/or the Dodd Frank Act.

    CBA is not acting as an advisor or fiduciary in connection with the provision of this information. You should obtain your own independent legal, financial, tax and other professional advice as you consider appropriate.