The International Energy Credit Association (“IECA”) has released a standardized agreement titled the “Dodd-Frank Act Representations and Reporting Amending Agreement” to facilitate end user compliance with the CFTC’s swap regulations. The Amending Agreement allows non-Swap Dealers (non-SDs) and non-Major Swap Participants (non-MSPs) to amend one or more swap or master swap agreements with other non-SDs/MSPs (sometimes referred to as “end users”) to address reporting obligations for the swaps and trade options between them. Importantly, it designates which of the two end user counterparties will serve as the “reporting counterparty” for any swaps between them—a designation CFTC regulations require as a term of any swap between end users. The Amending Agreement also includes representations to confirm the trade option status of any commodity option between the counterparties and to provide information regarding the regulatory status of each counterparty that may be required for compliance in many instances (such as whether or not each counterparty is an SD, MSP, eligible contract participant, U.S. person, financial entity, or special entity).
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