The Commodity Futures Trading Commission (“CFTC”) has adopted rules governing business conduct standards for swap dealers and other parties.¹ These rules apply to communications regarding swaps,² including communications that occur prior to entering into a swap. The purpose of this letter is to inform you that Capital One, National Association (“CONA”)—as a registered swap dealer—seeks to engage in certain communications with counterparties, which are not deemed to be “special entities”³ pursuant to a “safe harbor” available under those rules.
To satisfy the conditions of the safe harbor for swap communications, CONA will be making certain disclosures and agreements to you and CONA will ask that you make certain representations and agreements by executing our documentation that is required in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Supplement”). The Dodd-Frank Supplement will be provided to you as part of your onboarding materials and will specifically include:
Please note that CONA may need to significantly limit its communications regarding swaps if the conditions of the safe harbor, as described above and confirmed by CONA and you by executing a Dodd-Frank Supplement prior to execution of a swap, are not satisfied.
Should you have any questions regarding the “safe harbor” or the disclosures and representations described herein, please contact your CONA marketer.