CFTC Adopts Final Rule on Utility Operations-related Swaps with Utility Special Entities

On September 17, the CFTC approved a final rule on the exclusion of utility operations-related swaps with utility special entities from de minimis threshold for swaps with special entities.  "Special entities" refers to certain federal agencies and states, political subdivisions of states, and certain of their agencies, instrumentalities and pension systems, and certain electric and natural gas utilities.  Press Release.  Fact Sheet.  

CFTC Proposes Margin Requirements for Uncleared Swaps

On September 17, the CFTC approved a proposed rule addressing margin requirements for uncleared swaps entered into by swap dealers or major swap participants that are not subject to regulation by the Federal Reserve Board, the OCC, the FDIC, the FCA or the FHFA.  Press Release.  Fact Sheet.  

On September 19, Fitch released its criteria for analyzing large loans within single-borrower or multiborrower U.S. CMBS transactions.  Report

On September 17, DBRS released its methodology for rating U.S. structured finance transactions.  Report

On September 17, DBRS released its third-party due diligence criteria for U.S. RMBS transactions.  Report

On September 16, S&P released its criteria and key credit factors for several types of project finance transactions, including:

• Power Project Financings

• Oil And Gas Project Financings
• Road, Bridge and Tunnel Project Financings
• Social Infrastructure, Accommodation and Entertainment Project Financings

On September 16, S&P also released its methodology for assessing operating risks, its methodology of assessing transaction structure risks and its framework methodology for project finance transactions:

• Project Finance Operations Methodology

• Project Finance Transaction Structure Methodology
• Project Finance Framework Methodology

On September 16, Moody's released its rating methodology for credit card receivables-backed securities and other securities backed by revolving consumer loans.  Report   

On September 16, Fitch released its revised Fund Quality Ratings assessing funds' investment processes and operational attributes.  Report

On September 15, Fitch released its revised rating criteria for trade receivables securitizations.  Report   

Note: Free registration is required for rating agency releases and reports.

HSBC Settles RMBS Claims with FHFA

On September 12, the FHFA and several HSBC affiliates and certain of their current and former officers (collectively, HSBC) announced a US$550 million settlement of claims that the FHFA had brought against HSBC in the Southern District of New York.  FHFA, acting as conservator for Fannie Mae and Freddie Mac, alleged that HSBC made false and misleading statements in offering documents issued in connection with 19 RMBS securitizations.  It brought claims for violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as well as the Virginia and Washington, D.C., Securities Acts.  HSBC did not admit liability or wrongdoing.  Settlement Agreement.

IOSCO Publishes Consultation Paper on Risk Mitigation Standards for Non-Centrally Cleared OTC Derivatives

On September 17, the IOSCO published a consultation paper on risk mitigation standards for non-centrally cleared OTC derivatives (CR06/2014).

The standards have been developed in consultation with the Basel Committee on Banking Supervision and the Committee on Payments and Market Infrastructures and propose nine standards whose objectives are to increase financial stability, facilitate the management of counterparty credit and other risks and promote legal certainty.

Comments are invited before the closing of the consultation on October 17.  Consultation.