Disclosure of Material Information for Interest Rate Swaps

Disclosure of Material Information for Interest Rate Swaps

Material Risks of Interest Rate Swaps

The General Disclosure Statement for Transactions, together with the Interest Rate Derivatives Disclosure Annex, contain important information and disclosures about the associated material risks, characteristics, incentives and conflicts of interest that we as a registered Swap dealer are required to disclose or furnish to you in advance of transacting. Therefore, we urge you to review carefully such information and disclosures prior to entering into any Swap.

• General Disclosure Statement for Transactions
• Interest Rate Derivatives Disclosure Annex

Material Characteristics of Interest Rate Swaps

Material Economic Terms:

When we bilaterally negotiate the terms of a Swap with you, information about the material operational and economic terms of a Swap will generally be disclosed and discussed in the process of such negotiation. If you transact with us through an electronic platform, disclosure of the material operational and economic terms will be displayed on, or entered into, the terminal or screens through which the Swap is transacted. Additional information concerning material operational and economic terms of Swaps is included through the links in the sections below.

Transaction Terms:

The terms of any Interest Rate Swap that we may enter into with you will generally be determined as described in this statement. Transaction Terms

Standard forms of Interest Rate Swap confirmations are available here.

• IRS Confirmation
• IRS Confirmation with embedded floor
• Rate Cap Confirmation
• Swaption Confirmation

Rights and Obligations of the Parties:

The rights and obligations of the parties during the term of an Interest Rate Swap, as well as operational terms, will be included in the documentation that governs the Interest Rate Swap.

• ISDA Master Agreements, Credit Support Annexes, Protocols, Definitions, User’s Guides and related documents
  • ISDA Master Agreement & Credit Support Annex Documentation
  • 2021 ISDA Interest Rate Derivatives Definitions
  • ISDA Interest Rate Definitions
  • Pre-Trade Notification for the 2006 ISDA Definitions to include LIBOR Fallbacks
• ISDA Protocols
• KeyBank National Association Terms of Business for Swap Transactions (Please contact your KeyBank marketer for a copy of this document.)

Pre-trade mid-market mark:

We will, to the extent required by applicable law, provide the pre-trade mid-market mark of any prospective Swap between you and us pursuant to CFTC Regulation §23.431(a)(3)(i) as follows: If you have agreed to receive oral disclosure (with written confirmation to follow post-trade) of pre-trade mid-market marks of any Swaps, then we will provide such oral disclosure followed by written disclosure. If you have not agreed to receive such oral disclosure, then we will provide pre-trade mid-market marks of any proposed Swap in writing.

Note, however, that we will not provide pre-trade mid-market marks in respect of any Swaps for which the CFTC provides no-action or other relief from CFTC Regulation §23.431(a)(3). Click here for disclosure regarding terms of, and assumptions underlying, pre-trade mid-market marks. (Pre-Trade Mid-Market Mark)

Material Conflicts of Interest and Incentives

DCOs, Swap execution facilities and trading platforms may from time to time have in place arrangements that provide their members or participants with volume, market-making or other discounts or credits; may call for members or participants to prepay fees based on volume thresholds; or may provide other incentives or arrangements that are intended to encourage market participants to trade on or direct trades to that entity. We may participate in and obtain financial benefits from such incentive programs.

Daily Marks

We will provide you with a daily mid-market mark (the “Daily Mark”) for each uncleared Swap executed between us through Key Derivatives Online. If you need a password and login information for, or assistance with accessing, Key Derivatives Online and your Daily Mark page, please call 1-800-539-4147.