[co-author: Joshua Emmett]

ISDA Publishes IBOR Consultation Paper

On July 12, ISDA initiated a market-wide consultation on technical issues related to new benchmark fallbacks for derivatives referencing certain interbank offered rates, or IBORs, in response to the expected discontinuance of the publication of IBORs at the end of 2021. The purpose of this consultation is to ease the transition of the derivatives market from referencing existing IBOR rates to alternative risk-free-rates that have been identified as part of the global benchmark reforms. For additional information, click here.

CFTC Chairman Giancarlo Testifies on Virtual Currency and FinTech

On July 25, CFTC Chairman Giancarlo testified before the House Committee on Agriculture to discuss the priorities and recent work of the agency. The testimony touched on a number of areas, but focused in significant part on the CFTC's oversight of virtual currencies and financial technology. The Chairman described the CFTC's various initiatives and other activities relating to such areas, including the agency's assertive exercise of its anti-fraud and manipulation jurisdiction over virtual currency schemes. For additional information, click here.

Proposed Regulations Favorably Affect Foreign Currency Hedging Transactions

Treasurers often hedge foreign currency risk related to their business operations with an eye towards the accounting consequences, potentially missing how the U.S. federal income tax consequences diverge from GAAP. This article explores these differences and how recently Proposed Treasury Regulations have the potential to close the gap. For additional information, click here.

CFTC Releases White Paper Assessing Its Dodd-Frank Implementation

On April 26, CFTC Chairman Giancarlo and the CFTC Chief Economist published a white paper assessing the CFTC's implementation of the Dodd-Frank swaps reform to date and recommending improvements to the regulatory framework. The paper examines the following five key areas: (i) central counterparties; (ii) reporting rules; (iii) execution rules; (iv) dealer capital; and (v) the exceptions for corporate end-users under the clearing and uncleared margin requirements. For additional information, click here.