Regulatory Reporting Requirements

In accordance with relevant Dodd-Frank/CFTC reporting requirements, Brown Brothers Harriman & Co. (“BBH&Co.”) began reporting certain Covered FX Transactions to its swap data repository, DTCC Data Repository (U.S.) LLC, on April 10, 2013.

I. Covered FX Transactions

Covered FX Transactions include all foreign exchange (“FX”) forward, FX swap and/or swap transactions executed with BBH&Co. as principal, either (1) before July 21, 2010, but were still outstanding on July 21, 2010, or (2) on or after July 21, 2010.

Covered FX Transactions do not include spot transactions (i.e., FX trades with a T+2 settlement date or otherwise constituting bona fide spot transactions), which are generally excluded from Dodd-Frank reporting. BBH&Co. will treat any FX transaction with a tenor of T+3 or greater as a spot transaction if (i) sufficient details relating to the underlying security trade are provided to BBH&Co. at the time of execution, or (ii) BBH&Co. has concluded that such FX transaction is a bona fide spot transaction (e.g., by virtue of the trading relationship, e.g., FX transaction instructed via a custody FX standing instruction or BBH&Co.’s InfoFX product). Otherwise, BBH&Co. will treat such FX transaction as an FX forward subject to Dodd-Frank reporting.

II. Reporting Counterparty

BBH&Co. is and will be the reporting counterparty in respect of a Covered FX Transaction, unless:

  • BBH&Co.’s trading counterparty is a swap dealer (whether or not also a US Person);
  • BBH&Co.’s trading counterparty is a major swap participant (whether or not also a US Person); or
  • BBH&Co.’s trading counterparty is a US Person and a financial entity (and not a swap dealer or a major swap participant) that has requested that it be the reporting counterparty.
III. Trading Counterparty Info

To confirm its role as reporting counterparty and to ensure accurate and complete reporting, BBH&Co. will require the following information from its trading counterparties:

Trading counterparty’s Legal Entity Identifier (“LEI”) or Global Markets Entity Identifier (“GMEI”).1
Whether the trading counterparty is a US Person;
Whether the trading counterparty is a registered swap dealer or major swap participant; and
Whether the trading counterparty is a financial entity.

BBH&Co. also expects to be promptly notified in the event of changes to the above.

In its reporting of a Covered FX Transaction, BBH&Co. will reach out to a trading counterparty for its LEI/GMEI if BBH&Co. had not already been provided with that information, or for assurances to demonstrate that the Covered FX Transaction was in fact a bona fide spot transaction. If neither is provided to the satisfaction of BBH&Co., BBH&Co. will report the Covered FX Transaction using a BBH&Co. internal identifier.

Please direct any Dodd Frank inquiries to your Brown Brothers Harriman relationship manager or to FXReg.reports@bbh.com.

1LEI/GMEI information not applicable to Covered FX Transactions that expired or terminated prior to April 25, 2011.

In accordance with relevant transaction reporting requirements adopted by Canadian provincial regulators, Brown Brothers Harriman & Co. (“BBH&Co.”) began reporting certain Covered FX Transactions to its designated trade repository, DTCC Data Repository (U.S.) LLC, on October 31, 2014.

I. Covered FX Transations

Covered FX Transactions include all foreign exchange (“FX”) forward, FX swap and/or swap transactions executed with BBH&Co., as principal, either on or after October 31, 2014 with a Canadian local counterparty.

A “local counterparty” is, at the time of the transaction: (a) a person or company organized under the laws of, or having its head office or principal place of business in the respective Canadian province, or (b) an affiliate of an entity described in (a) where the entity in (a) has guaranteed all or substantially all of the liabilities of its affiliate.

Covered FX Transactions do not include spot transactions which are defined as a contract or instrument for the purchase and sale of currency that (i) requires settlement within T+2 or after T+2 provided that the contract or instrument was entered into contemporaneously with a related security trade and requires settlement on or before the relevant security trade settlement deadline, (ii) is intended, at the time of execution, to be settled by the delivery of the currency within the time periods set out in (i) above, and (iii) does not allow for the contract or instrument to be rolled over.

BBH&Co. will generally treat any FX transaction with a tenor of T+3 or greater as a spot transaction if (i) sufficient details relating to the underlying security trade are provided to BBH&Co. at the time of execution, or (ii) BBH&Co. has concluded that such FX transaction is a spot transaction (e.g., by virtue of the trading relationship, e.g., FX transaction instructed via a custody FX standing instruction or BBH&Co.’s InfoFX product). Otherwise, BBH&Co. will treat such FX transaction as an FX forward subject to Canadian provincial regulator trade reporting.

II. Reporting Counterparty

BBH&Co. is and will be the reporting counterparty in respect of a Covered FX Transaction, unless:

BBH&Co.’s trading counterparty is a Canadian dealer or derivatives dealer that has agreed to be the reporting counterparty; or
BBH&Co.’s trading counterparty is a Canadian local counterparty (and not a Canadian dealer or derivatives dealer) that has requested that it be the reporting counterparty.

III. Trading Conuterparty Info

To confirm its role as reporting counterparty and to ensure accurate and complete reporting, BBH&Co. will require the following information from its trading counterparties:

Trading counterparty’s Legal Entity Identifier (“LEI”) or Global Markets Entity Identifier (“GMEI”);
Whether the trading counterparty is a Canadian dealer or derivatives dealer; and
Whether the trading counterparty is a Canadian local counterparty.

BBH&Co. also expects to be promptly notified in the event of changes to the above.

In its reporting of a Covered FX Transaction, BBH&Co. will reach out to a trading counterparty for its LEI/GMEI if BBH&Co. had not already been provided with that information, or for assurances to demonstrate that the Covered FX Transaction was a spot transaction meeting the requirements above.

Please direct any Canadian provincial regulator trade reporting inquiries to your Brown Brothers Harriman relationship manager.

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