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CFTC’s GMAC: Bank Capital Proposals Will Harm Cleared Derivatives Markets and Improvements Needed to Variation Margin Processes in...

The Global Markets Advisory Committee (“GMAC”) of the U.S. Commodity Futures Trading Commission (“CFTC”) issued on June 4, 2024, a report on cleared derivatives and recommendations for non-cleared derivatives that will be of...more

Part 12: Amendments to Other CFTC Regulations to Account for Proposed Regulation §1.44

This post is the final installment of our multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 11: Information and Disclosure Requirements in the Separate Account Context

This post is the next installment of multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 10: Capital, Risk Management, and Segregation Calculations by FCMs

This post is the next installment of a multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 9: The One Business Day Margin Call Requirement—Miscellaneous Considerations

This post is the next in our multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 8: The One Business Day Margin Call Requirement under CFTC Regulation §1.44

This post is an overview of the “one business day margin call requirement” that applies to separate account customers under CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on...more

Part 7: The Ordinary Course of Business and the Separate Account Election

This post is the next installment in a multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 6: The Treatment of Separate Accounts—General Conditions

This post is the next installment in a multi-part series on CFTC Regulation §1.44, as proposed by the U.S. Commodity Futures Trading Commission (the “CFTC”) on February 20, 2024 (the “Proposed Rule”)....more

Part 5: The Margin Adequacy Requirement of Proposed CFTC Regulation §1.44

This post continues our multi-part series on proposed CFTC Regulation §1.44 (the “Proposed Rule”). If adopted, the Proposed Rule will require every futures commission merchant (“FCM”) to ensure that a customer does not...more

Part 4: CFTC Regulation 1.44—Key Definitions

The previous post in this series discussed how different market participants hold different views of the relationship between an investment manager and its clients, particularly in the separate account context. That post...more

Part 3: Separate Accounts and CFTC Regulation §1.44—Different Views of the Same Situation

This is the next installment of our multi-part series on the February 20 proposal by the U.S. Commodity Futures Trading Commission (the “CFTC”) in respect of proposed CFTC Regulation §1.44 (the “Proposed Rule”)....more

Part 2: Separate Accounts in the Investment Management Context

This is the third of a multi-part series (Introduction; Part 1) on a February 20 proposal by the U.S. Commodity Futures Trading Commission (“CFTC”) to implement CFTC Regulation §1.44 (the “Proposed Rule”) and related...more

Part 1: The Margin Adequacy Requirement under CFTC Rule 1.44 Generally

This is the second of a multi-part series on a February 20 rule proposal by the U.S. Commodity Futures Trading Commission (“CFTC”) to...more

Introduction: CFTC Proposes Regulations to Address Margin Adequacy and to Account for the Treatment of Separate Accounts by...

On February 20, 2024, the U.S. Commodity Futures Trading Commission (the “CFTC”) proposed regulations under the Commodity Exchange Act (the “CEA”) that will be of particular interest to futures commission merchants (“FCMs”)...more

ISDA and Clarus Publish the Final Risk-Free Rate Adoption Indicator

January 29, 2024, marks the end of an era for the interest rate derivatives (“IRD”) markets, since on this date the International Swaps and Derivatives Association (“ISDA”) and Clarus Financial Technology (“CFT”) published...more

1/30/2024  /  Derivatives , Interest Rate Swaps , ISDA , Swaps

Transactional Corner: Cross-Default (Under Specified Transactions?)—Drafting Considerations Related to a “Compound” Event of...

Background - The governing agreements for a wide range of transactions, from the most basic financing arrangements to the most complex derivatives trading relationships, frequently include a “cross-default” event of...more

The Corporate Treasurer’s Corner: A Paradigm for Considering Legal Issues That Relate to Hedging and Managing Risk

Managing a company’s cash and financial assets equates to managing a company’s risks. This is axiomatic. Derivatives—and related contractual arrangements—have been widely used for risk management purposes in the financial...more

Crypto and Carbon and Governance…Oh My! (Was There Ever Really a Kansas for Digital Assets and Environmental Commodities?)

On November 13, 2023, Commodity Futures Trading Commission (“CFTC”) Commissioner Kristin Johnson delivered a keynote address to the Atlanta Economics Club titled “Policing the (Token) Economy: Introducing Corporate Governance...more

Transactional Corner: NOW Is the Time to Complete Your MSFTA Negotiations…Seriously

Mandatory TBA Margining under FINRA Rule 4210 Starts May 22, 2024 - On August 18, 2023, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 23-14 announcing that mandatory margining of certain...more

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