Equity Derivative Transactions

Dodd-Frank Overview

• Transaction Risk Information, Disclosures and Documents
• Transaction-Specific Pre-trade Disclosure
• Conflicts of Interest
• Daily Marks
• Transaction Reporting
• Future Regulatory Developments
• ISDA Protocols
• Recording of Telephone Lines

Product Disclosures & METs

• Commodity Derivatives Transactions
• Equity Derivative Transactions
• Foreign Exchange Transactions
• Interest Rate Transactions
• Credit Derivative Transactions

Additional Notifications and Disclosures

• Important Information Regarding Marks for Swaps and Security-Based Swaps
• Segregation of Independent Amount
• Address for Complaints
• Certain SBS Transactions with Jefferies International Limited (ANE SBS Transactions)
• Certain SBS Transactions with Jefferies GmbH (ANE SBS Transactions)

•  Disclosures
•  Material Economic Terms

Disclosures

ISDA General Disclosure Statement for Transactions

The ISDA General Disclosure Statement for Transactions describes generally: (1) the material characteristics of a wide variety of derivative transactions that we may conduct with you; (2) the material risks of such transactions; and (3) typical material incentives and conflicts of interest that we may have with respect to such transactions.  The ISDA General Disclosure Statement for Transactions is supplemented with product specific disclosures contained in annexes, including the ISDA Disclosure Annex for Equity Derivative Transactions.  For Equity Derivative Transactions, the ISDA General Disclosure Statement for Transactions should be read in conjunction with the ISDA Disclosure Annex for Equity Derivative Transactions.

ISDA Disclosure Annex for Equity Derivative Transactions

The ISDA Disclosure Annex for Equity Derivative Transactions supplements and should be read in conjunction with the ISDA General Disclosure Statement for Transactions. NOTHING IN THE ISDA DISCLOSURE ANNEX FOR EQUITY DERIVATIVE TRANSACTIONS AMENDS OR SUPERSEDES THE EXPRESS TERMS OF ANY TRANSACTION BETWEEN YOU AND US OR ANY RELATED GOVERNING DOCUMENTATION. Accordingly, descriptions in the ISDA Disclosure Annex for Equity Derivative Transactions of the operation of Equity Derivative Transactions and the consequences of various events are in all cases subject to the actual terms of an Equity Derivative Transaction executed between you and us and its governing documentation.

ISDA Disclosure Annex for Interest Rate Transactions

The ISDA Disclosure Annex for Interest Rate Transactions supplements and should be read in conjunction with the ISDA General Disclosure Statement for Transactions. NOTHING IN THE ISDA DISCLOSURE ANNEX FOR INTEREST RATE TRANSACTIONS AMENDS OR SUPERSEDES THE EXPRESS TERMS OF ANY TRANSACTION BETWEEN YOU AND US OR ANY RELATED GOVERNING DOCUMENATION. Accordingly, descriptions in the ISDA Disclosure Annex for Interest Rate Transactions of the operation of Interest Rate Transactions and the consequences of various events are in all cases subject to the actual terms of an Interest Rate Transaction executed between you and us and its governing documentation. 

ISDA IBOR Alternative Reference Rates Disclosure

The IBOR Alternative Reference Rates Disclosure supplements and should be read in conjunction with the Disclosure Annex for Interest Rate Transactions. NOTHING IN THIS DISCLOSURE AMENDS OR SUPERSEDES THE EXPRESS TERMS OF ANY TRANSACTION BETWEEN YOU AND US OR ANY RELATED GOVERNING DOCUMENTATION. Accordingly, the information provided in this Disclosure is subject in all cases to the actual terms of a Rates Transaction executed between you and us and its governing documentation.

Material Economic Terms

Below are the Material Economic Terms that Jefferies is required to provide to you pursuant to CFTC Rule 23.431 and SEC Rule 240.15Fh-3(b) in relation to Equity Derivative Transactions entered into between us. These terms should be read prior to entering into an Equity Derivative Transactions with us.

Certain rights and obligations of the parties to derivative transactions, including Equity Derivative Transactions, are contained in Counterparty Relationship Documentation. Please click on the Transaction Risk Information Disclosures and Documents under Dodd-Frank Overview on the left to find certain forms of Counterparty Relationship Documentation that may be applicable to your relationship with Jefferies. 

The terms of any specific Equity Derivative Transaction generally will be contained in an Equity Derivative Master Confirmation Agreement between Jefferies and you which is executed pre-trade and is supplemented by a post-trade Transaction Supplement for each transaction. In the event that we enter into a transaction that is not subject to a Master Confirmation Agreement, then the terms of that transaction will be contained in a confirmation of that transaction between us, which would generally be entered into post-trade. Below are links to forms of Master Confirmation Agreements relating to a variety of Equity Derivative Transactions that Jefferies may enter into with counterparties from time to time.  Forms of Transaction Supplements are found in the annexes to the forms of Master Confirmation Agreements. Any Master Confirmation Agreement, Transaction Supplement or other documentation we directly provide to you in respect of an actual or potential Equity Derivative Transaction will supersede the information on this web page and, to the extent inconsistent therewith, such Master Confirmation Agreement, Transaction Supplement or other documentation will control.  In addition, the agreed upon terms of any Equity Derivative Transaction that we enter into with you will be set forth in the Master Confirmation Agreement, Transaction Supplement or other agreement that you and we enter into with respect to that Equity Derivative Transaction and may differ materially from the terms set forth in the forms available on or through this web page.  By making this web page available, we are not indicating that we are willing to enter into any Equity Derivative Transaction with any counterparty on any terms.

Certain terms relating to the operation of an Equity Derivative Transaction are contained in the provisions of the 2002 ISDA Equity Derivatives Definitions  (“Equity Definitions”), and the 2006 ISDA Definitions (the “2006 Definitions”) or the 2021 ISDA Definitions (the “2021 Definitions”)  which are generally incorporated by reference in the relevant Master Confirmation Agreement. Below are links to the Equity Definitions, the 2006 Definitions and the 2021 Definitions. Any supplements to these Equity Definitions, 2006 Definitions, 2021 Definitions or other market documents are available for purchase from ISDA at: www.isda.org.

Please refer to your Counterparty Relationship Documentation, the Master Confirmation Agreement template (which include the forms of Transaction Supplements as annexes), the Equity Definitions and the 2006 Definitions or 2021 Definitions (as applicable) as well as the relevant disclosures applicable to Equity Derivative Transactions prior to engaging in Equity Derivative Transactions with us. 

2002 ISDA Equity Derivatives Definitions

2006 ISDA Definitions

2021 ISDA Definitions and related Matrices:

1. Main Book: Version 10
2. Floating Rate Matrix: Version 10
3. Settlement Matrix: Version 7
4. Currency/Business Day Matrix: Version 5
5. Mark-to-Market Matrix: Version 5

Master Confirmation Agreement for Equity Swap Transactions

Certain agreed upon terms specific to Equity Derivative Transactions are contained in a Master Confirmation Agreement, as supplemented by a Transaction Supplement between Jefferies and you.