Podcast: Credit Funds: Credit Default Swaps in the Distressed Limelight
The credit derivatives determinations process has, for some time, been clouded in relative mystery. As credit default swap (CDS) strategies have grown more complex and gray-area issues have become more commonplace, advocacy...more
On 16 March 2020, the European Securities and Markets Authority (ESMA) issued a decision pursuant to Article 28(1)(a) of Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short...more
On February 15, 2019, the U.S. District Court for the Southern District of New York issued its ruling in the case of Aurelius Capital Master, Ltd. (“Aurelius”) against Windstream Services, LLC (“Windstream”). The origins of...more
HSBC chief John Flint is out just 18 months after he assumed the role as head of the London-based bank, likely due to clashes with Board Chair Mark Tucker and the lender’s focus on expanding in China. HSBC also announced it...more
German Parliament adopts Brexit Transitional Act - The German Parliament (“Bundestag”) adopted by a large majority the so-called Brexit Transitional Act (“Brexit-Übergangsgesetz”) submitted by the Federal Government on...more
Some continuing reaction to the potential end to the trade war between the US and China, through the lens of a Delaware lighting store [NYTimes] and US businesses far more broadly, who are grappling with the question of what...more
A recent decision reminds credit swap market participants that thorough knowledge of the documentation and definitions relating to a particular credit default swap is critical....more
Chalk up a major win for Carl Icahn. Icahn has forced Xerox’s CEO, Board Chair, and 5 other board members out of their jobs as part of a push by activist investors. The shake-up will jeopardize the company’s $6.1 billion...more
SEC/CORPORATE - SEC Updates to Form ADV FAQs - On June 12, the staff of the Securities and Exchange Commission’s Division of Investment Management updated its Frequently Asked Questions on Form ADV and IARD. Much of the...more
SEC/CORPORATE – SEC Division of Corporation Finance Issues C&DIs on Application of Rule 701 – On June 23, the Staff of the Division of Corporation Finance (Staff) of the Securities and Exchange Commission...more
A Commission Delegated Regulation on central clearing for credit default swaps supplementing the European Markets Infrastructure Regulation was published in the Official Journal of the European Union. Under the Regulation,...more
On April 13, the International Swaps and Derivatives Association, Inc. (“ISDA”) published an updated classification letter that enables counterparties to notify each other of their status for clearing and other regulatory...more
On March 1, the European Commission (EC) adopted new rules in the form of a delegated regulation (Delegated Regulation) to impose clearing obligations on certain index credit default swaps (CDSs). The contracts captured by...more
SEC/CORPORATE - SEC Chair Addresses Advisory Committee on Small and Emerging Companies - On February 25, Securities and Exchange Commission Chair Mary Jo White addressed members of the SEC’s Advisory Committee on...more
In times of financial turbulence, politicians, regulators and the media make the case for tighter controls of the markets. However, with new regulatory powers coming in and the resulting extra layer of complexity that their...more
Our first installment on the CFTC’s proposed margin rules (Margin Rules) for uncleared swaps addressed the importance of the “financial end user” definition and making certain notional calculations. Our second and third...more
On October 2, the European Securities and Markets Authority (ESMA) finalized and issued a draft regulatory standard (RTS) for the mandatory clearing of certain credit default swaps (CDS) as required under the European Market...more
On August 3, the European Securities and Markets Authority (ESMA) issued an official opinion (Opinion), agreeing to renew for a further four weeks the emergency short selling prohibition originally imposed by the Hellenic...more
On July 6, the European Securities and Markets Authority (ESMA) issued an official opinion (Opinion), agreeing to renew the emergency short selling prohibition originally imposed by the Hellenic Capital Market Commission...more
On September 24, the European Securities and Markets Authority (ESMA) published on its website the public responses to its Consultation Paper on the draft regulatory standards (RTS) for Clearing Obligation No. 2 concerning...more
On August 18, the consultation period closed for responding to the draft regulatory technical standards (RTS) published by the European Securities and Markets Authority (ESMA) for the mandatory clearing of certain interest...more
CFTC Announces New Approach for Considering Requests for Relief from Registration for Delegating Commodity Pool Operators - On May 12, CFTC Division of Swap Dealer and Intermediary Oversight announced a streamlined...more