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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 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 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

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

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