The Delta Report: On the end of LIBOR: preliminary reflections on its implications for derivatives

by White & Case LLP
Contact

White & Case LLP

Background and how the London Interbank Offered Rate ("LIBOR") works

The financial crisis brought considerable changes to the entire financial regulatory environment and the way many financial instruments, especially derivatives, are traded. It also impacted LIBOR. LIBOR is an unsecured interbank rate used in the London lending and borrowing market. In 2012, regulatory investigations began to reveal manipulation of published LIBOR rates. This prompted a regulatory debate on benchmarks and the related regulatory and legal developments.

ICE LIBOR (formerly known as BBA LIBOR) is a benchmark rate produced for five currencies17 with seven maturities quoted for each, ranging from overnight to 12 months, producing 35 rates each business day.18 It is administered by ICE Benchmark Administration ("IBA"), the entity that took over the administration of LIBOR in 2014 (the "Libor Administrator"). There has traditionally been an element of subjectivity in LIBOR. For example, a panel bank may not necessarily have borrowed in the full spectrum of LIBOR maturities, which leaves room to estimate data. Furthermore, if, on a given day, a panel bank has not borrowed in a particular LIBOR currency, it would have to draw upon different data to produce the rate. Since the crisis, interbank lending has reduced considerably and thus has become less liquid.

On 27 July 2017, Andrew Bailey, Chief Executive of the Financial Conduct Authority (the "FCA"), announced that, by the end of 2021, the FCA will not use its legal powers to compel or persuade banks to submit to LIBOR.19 The reason behind this decision is that banks are not comfortable providing submissions to LIBOR where there are only few eligible term borrowing transactions by large banks.20 Mr Bailey described this situation as "potentially unsustainable, but also undesirable, for market participants to rely indefinitely on reference rates that do not have active underlying markets to support them".21 This does not necessarily mean that LIBOR will be discontinued. In fact, it is understood that the LIBOR Administrator has indicated its intention to continue producing LIBOR22 although, as mentioned earlier, the FCA will no longer compel any bank to make submissions; as such, there is a material risk that LIBOR will not continue in its current shape.

Given the interconnectivity of the bond and derivatives markets, following industry working groups, it is anticipated that bond markets will be guided by the International Swaps & Derivatives Association, Inc. ("ISDA") guidelines on fallbacks. This will ensure matching cash flows between bonds and derivatives. The pricing of many financial instruments depends on the accuracy and integrity of benchmarks. LIBOR rates have become widely referenced in major interest rate derivatives such as swaps, options and forwards. It is calculated that up to US$500 trillion of swaps rely on market indices. Since LIBOR will not be discontinued, it is unclear how many participants will cease using it. However, following responses from market participants to a questionnaire conducted by ISDA, it would appear that market participants endorse the Sterling Overnight Index Average ("SONIA"), an alternative benchmark to LIBOR.23

Market participants may, therefore, need to rely on alternative benchmark arrangements. The cessation of market-wide usage of LIBOR will obviously affect derivative contracts that rely on LIBOR as well as derivative contracts that rely, for example, on the 2006 ISDA Definitions (the "2006 Definitions") as published by ISDA. The 2006 Definitions provide for a set of definitions that are commonly incorporated into the trading terms for interest rate swap transactions. Other sets of definitions which also reference LIBOR include, but are not limited to, the 2002 ISDA Equity Definitions, 1998 Currency and FX Definitions and the 2005 ISDA Commodity Definitions, each as published by ISDA.

The Benchmark Regulation

The Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 (the "BMR"), which came into force on 30 June 2016, will apply from 1 January 2018. It is a direct consequence of the previous investigations into LIBOR and constitutes the legislative response of the European Union ("EU") to remove any uncertainty regarding the objectivity of LIBOR and other benchmarks. The BMR lays down a new harmonised regulatory framework that imposes conditions on benchmark contributors and administrators. To date, administrators and users of benchmarks have been subject to different rules in different EU Member States. As with all EU regulations, the BMR will have direct effect and will directly impose obligations on persons involved in the provision, contribution and use of benchmarks across the EU. It will not need to be implemented by individual EU Member States.

A "benchmark" is defined under the BMR as:

"Any index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument, is determined, or an index that is used to measure the performance of an investment fund with the purpose of tracking the return of such index or of defining the asset allocation of a portfolio or of computing the performance fees".24

An "index" is broadly defined as any figure which is:

(a) published or made available to the public; and

(b) regularly determined entirely or partially by the application of a formula or any other method of calculation, or by an assessment, and on the basis of the value of one or more underlying assets or prices including estimated prices, actual or estimated interest rates, quotes and committed quotes or other values or surveys."

Article 28(2) of the BMR sets out the general framework in the event that a benchmark materially changes or ceases to be provided:

"Supervised entities other than an administrator as referred to in paragraph 1 that use a benchmark shall produce and maintain robust written plans setting out the actions that they would take in the event that a benchmark materially changes or ceases to be provided. Where feasible and appropriate, such plans shall nominate one or several alternative benchmarks that could be referenced to substitute the benchmarks no longer provided, indicating why such benchmarks would be suitable alternatives. The supervised entities shall, upon request, provide the relevant competent authority with those plans and any updates and shall reflect them in the contractual relationship with clients."

The scope of Article 28(2) is limited to establishing the obligation on supervised entities to maintain contingency plans in the event that a benchmark materially changes or ceases to be provided. This obligation falls on supervised entities that use a benchmark. "Use of a benchmark" is defined in Article 3(1)(7) of the BMR in broad terms to include the following situations:

(a) issuance of a financial instrument which references an index or a combination of indices;

(b) determination of the amount payable under a financial instrument or a financial contract by referencing an index or a combination of indices;

(c) being a party to a financial contract which references an index or a combination of indices;

(d) providing a borrowing rate,25 as defined in point (j) of Article 3 of Directive 2008/48/EC, calculated as a spread or mark-up over an index or a combination of indices and that is solely used as a reference in a financial contract to which the creditor is a party; and

(e) measuring the performance of an investment fund through an index or a combination of indices for the purpose of tracking the return of such index or combination of indices, of defining the asset allocation of a portfolio or of computing the performance fees.

As with other pieces of European legislation, a list of Questions & Answers has been published, albeit no questions on Article 28 have been raised to date.26 In respect of subparagraph (b) above, it is not entirely clear what "use of a benchmark" will mean in the context of derivatives. The European and Securities Market Authority ("ESMA") has confirmed that the following will be considered supervised entities using a benchmark:27

(a) a trading venue, where the derivative is the subject for a request for admission to trading on such trading venue or is traded on such trading venue, to the extent terms of such trading venue specified a benchmark;

(b) an investment firm acting in the capacity of a systematic internaliser to the extent the terms of such internaliser specified a benchmark;

(c) a CCP, where the derivatives is cleared by such CCP to the extent the terms of such CCP specified a benchmark; and

(d) each party to a transaction of a derivative where none of (a) to (c) above applies.

Following this clarification there is no doubt that parties to a derivative transaction will be categorised as parties that use a benchmark.

It is important to highlight that Article 28(2) requires that any actions included in the contingency plans contemplate two triggers: (a) if a benchmark changes materially; or (b) if it ceases to be provided. It follows that any BMR-compliant fallback will have to expressly include these two triggers. It will not always be the case that current fallbacks under the different sets of definitions have these two triggers. These plans, which will be triggered by any of these two events, will have to be robust. ISDA has conducted a thorough review of the 2016 Definitions to establish whether the current fallbacks include these two triggers and the result indicates that amendments will be required.

Replacement of LIBOR

In the last few years, regulators, working groups of industry organisations and market participants have discussed how to effect the change from the existing LIBOR to a different benchmark. In particular, the Financial Stability Board (the "FSB") conducted a major review (the "FSB Review") of the major interest rate benchmarks which resulted in a report in which set out its recommendations.28 In its review, the FSB noted that "shifting a material proportion of derivative transactions to a risk-free rate would reduce the incentive to manipulate rates that include bank credit risk and would reduce the risks to bank safety and soundness and to overall financial stability".29

Following its meeting on 7 April 2017, each member firm of a working group set up by the Bank of England (the "BoE") to examine alternatives for LIBOR voted on its preferred near risk-free reference rate ("RFR").30 On 28 April 2017, the BoE proposed31 the replacement of LIBOR with SONIA, whose administrator is the BoE itself. Created in 1997, it reflects overnight funding rates in the Sterling unsecured market. SONIA is an overnight unsecured rate which is currently been reformed by the BoE and which has not yet been published. In principle, it is anticipated that SONIA will move to a new basis by April 2018.32

The BoE is currently working towards the adoption of SONIA as an alternative to Sterling LIBOR and in principle, the adoption strategy will have three strands: (a) development of interest rate derivative products referencing SONIA; (b) seeking feedback on the potential use of SONIA in instruments other than interest rate derivatives; and (c) discussion on the conversion of existing LIBOR contracts to reference SONIA.33

The BoE preferred reformed SONIA to the two available secured overnight rate candidate RFRs – the Sterling Repo Index Rate or Sterling SONET – since their collective assessment was that it best met the selection criteria.34

How is this likely to affect derivative documents?

The challenging question is how existing definitions of LIBOR will operate when the replacement occurs. ISDA has established a working group to lead discussions and propose changes. The BMR acknowledges that the cessation of the administration of a critical benchmark by an administrator could render financial contracts or financial instruments invalid, cause losses to consumers and investors, and impact financial stability.35

LIBOR is included as a benchmark in the 2006 Definitions which also contain fallback provisions to the benchmarks that will cease to continue. However, it is not clear whether a fallback benchmark may meet the criteria recommended by the FSB the Principles for Financial Benchmarks published by IOSCO on 16 April 2013 (the "Principles").36 In particular, Principle 13 thereof requires procedures to be followed if a benchmark is discontinued.

ISDA is currently working on the necessary amendments to certain definitions of the different sets of ISDA definitions, most notably the 2006 Definitions. The strategy has three limbs and will aim to: (a) design fallback mechanisms in the event that LIBOR is permanently discontinued; (b) consider amendments to the 2006 ISDA Definitions to add additional fallbacks; and (c) discuss amendment of legacy contracts. Currently, market participants can rely on the existing fallbacks contained in the 2006 Definitions. For example, the parties can rely on the default fallback for LIBOR which, following a request for quotations by the party acting as calculation agent, will consist of the determination by four major banks of the London interbank market.

In respect of legacy trades, ISDA has warned that "switching the reference rate for existing transactions would likely result in shifts in valuations, which could be disruptive to the market."37 There have been suggestions of a protocol published by ISDA to help firms alter their legacy contracts to incorporate the fallbacks in an efficient way. Separately, in his speech, Mr. Bailey queried "whether the better approach to transition would be to amend contracts to reference an alternative rate, or amend the definition of LIBOR through the fallback protocol to replace the current methodology with alternative reference rates."38 This is a question which is still being considered by the market, particularly ISDA, and which may eventually involve a protocol.

Conclusions

Pursuant to the BMR, it is obvious that market participants will have to select a replacement benchmark and design replacement mechanics that work smoothly. Following the BoE's endorsement and the latest ISDA survey, there seems to be a developing consensus that SONIA will be the replacement benchmark. However, a benchmark in respect of Sterling is only a contractual term and this will be a voluntary process. There is a risk of market fragmentation if a majority of market participants fail to adhere to a universal benchmark rate.

17 - These include the Swiss Franc, Euro, Pound Sterling, Japanese Yen and US Dollar.
18 - ICE LIBOR provides an indication of the average rate at which a LIBOR contributor bank can obtain unsecured funding in the London interbank market for a given period, in a given currency. Essentially, each bank estimates how much it would cost to it to borrow money on that particular day. Individual ICE LIBOR rates are the end-product of a calculation based upon submissions from LIBOR contributor banks. The LIBOR administration maintains a reference panel of between 11 and 17 contributor banks for each of the calculated currencies. Further information available at: theice.com/iba/libor
19 - Available at: fca.org.uk/news/speeches/the-future-of-libor
20 - Data provided by the LIBOR Administrator in the 2Q 2017 showed that the 5 benchmarks of LIBOR rely materially on market data and not on transaction data. Available at: theice.com/publicdocs/ICE_LIBOR_Quarterly_Volume_Report_Q2_2017.pdf
21 - Please see footnote 19.
22 - Financial News, 11 August 2017. Available at: fnlondon.com/articles/ice-benchmark-chief-libor-is-not-dead-20170811
23 - ISDA response to the Bank of England Working Group on Sterling Risk-Free Reference Rates White Paper: SONIA as the RFR and approaches to adoption, 29 September 2017 (not available as a link, as at the date of this Report).
24 - Article 3(3) BMR.
25 - This is defined as: "the interest rate expressed as a fixed or variable percentage applied on an annual basis to the amount of credit drawn down".
26 - Questions and Answers on the Benchmark Regulation (BMR), last update 29 September 2017. Available at: esma.europa.eu/press-news/esma-news/esma-publishes-benchmarks-regulation-qa-transitional-provisions
27 - Questions and Answers on the Benchmark Regulation (BMR), Q5.2.
28 - Available at: fsb.org/wp-content/uploads/r_140722.pdf
29 - FSB Review, page 11.
30 - The other two overnight RFRs were Sterling SONET, and Sterling Repo Index Rate (RIR).
31 - Bank of England Press Release, 28 April 2017. Available at: bankofengland.co.uk/publications/Documents/news/2017/033.pdf
32 - Bank of England, bankofengland.co.uk/markets/Pages/benchmarks/soniareform.aspx
33 - The Working Group on Sterling Risk-Free Reference Rates, SONIA as RFR and Approaches to Adoption, June 2017. Available at: bankofengland.co.uk/markets/Documents/sterlingoperations/rfr/rfrwgwhitepaper0617.pdf
34 - SONIA as RFR and Approaches to Adoption, page 1.
35 - BMR, Recital 37.
36 - Available at: iosco.org/library/pubdocs/pdf/IOSCOPD415.pdf
37 - Benchmark Transition Plans will be Critical, 29 June 2017. Available at: isda.derivativiews.org/2017/06/29/benchmark-transition-plans-will-be-critical
38 - Please see footnote 19.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© White & Case LLP | Attorney Advertising

Written by:

White & Case LLP
Contact
more
less

White & Case LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.