News & Analysis as of

Forward Contracts

Foley & Lardner LLP

Silicon Valley Bank Run Response: Asset Sale to New Bridge Bank

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On March 13, 2023, the FDIC announced that substantially all of the assets of Silicon Valley Bank have been transferred to a “bridge bank,” which is a newly chartered bank operated by a board appointed by the FDIC. This...more

Cadwalader, Wickersham & Taft LLP

Looking Forward: The IRS Denies 40/60 Treatment for Over-the-Counter Foreign Currency Options under the Mark-to-Market Rules

The IRS has published Proposed Regulations clarifying that for purposes of the mark-to-market rules under section 1256, foreign currency contracts include only foreign currency forward contracts, and that the definition does...more

Mayer Brown Free Writings + Perspectives

New Compliance and Disclosure Interpretation Regulates Forward Contracts on Restricted Securities

On June 9, 2022, the staff (“Staff”) of the US Securities and Exchange Commission (“SEC”) added Question 101.01 to its Compliance and Disclosure Interpretations (“C&DI”), addressing forward contracts on restricted securities....more

Lowenstein Sandler LLP

SEC Releases Guidance Jeopardizing the Viability of Certain Pre-IPO Liquidity Products

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Takeaways: •‘Forward Contracts’ on securities that (1) cannot be legally transferred, or (2) are subject to transfer restrictions at the time of contract, may now be considered ‘security-based swaps’ and subject to the...more

Dechert LLP

Second Circuit Affirms Enforceability of Swaps’ Flip Provisions

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Swaps, together with repurchase agreements, forward contracts, securities contracts and commodities contracts receive special treatment under the bankruptcy code-they are largely exempt from the automatic stay, bankruptcy...more

Pillsbury Winthrop Shaw Pittman LLP

Legal Implications of Secondary SAFT Sales

Simple Agreements for Future Tokens pose difficult and controversial legal questions under U.S. securities, commodities and tax laws. SAFT holders face significant difficulties in securing liquidity, and regulatory issues...more

White & Case LLP

Financial Regulatory Observer - December 2019: Lifting the lid on MAR

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The latest consultation paper from ESMA raises some important questions about the market abuse regulation (MAR) but lacks detail in some crucial areas. On October 3, 2019, the European Securities and Markets Authority...more

Holland & Knight LLP

Pennsylvania Proposes Restrictions on Municipal Interest Rate Swaps

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• New legislation has been proposed in Pennsylvania imposing specific restrictions and parameters on interest rate swaps entered into by certain cities, counties and municipal authorities in the Commonwealth, and imposing new...more

BCLP

A step forward – the FirstEnergy Solutions court comes to the commonsense conclusion that steel forges aren’t “forward contract...

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In the In re FirstEnergy Solutions Corporation bankruptcy cases, the court recently issued an opinion narrowing the number of situations in which a fixed-price supply agreement (used to hedge against rising input costs and...more

Bracewell LLP

End User of Electricity Forward Contract Found Not To Be Forward Contract Merchant Under Bankruptcy Code Safe Harbor Provisions

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On January 15th, 2019, the U.S. Bankruptcy Court for the Northern District of Ohio held that the end user of an electricity forward contact was not entitled to the benefits of the safe harbor provisions under Section 556 of...more

Benesch

InterConnect FLASH! No. 69 - California Lawmakers Drag in Shippers and Their Intermediaries to IC Battlefront

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California Senate Bill No. 1402 (the “Act”) was recently signed into law by Governor Brown, further entrenching motor carriers, brokers and shippers into the on-going California independent contractor (IC) vs. employee...more

Burr & Forman

Some Legal Issues Surrounding Blockchain and Cryptocurrency Part 4: Commodities Forwards Before Dodd-Frank: Zelener & Erskine.

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Prior to Dodd-Frank, the CFTC and Courts recognized a distinction between traded futures contracts subject to CFTC jurisdiction and individualized non-exchange-traded contracts for the present sale of a cash commodity for...more

Dechert LLP

Examining the Limits of the Forward Contract Safe Harbor

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As discussed in a recent Dechert OnPoint, section 365(e)(1) of the U.S. Bankruptcy Code provides that an executory contract of a debtor may not be terminated solely because of a provision in such contract that is conditioned...more

Skadden, Arps, Slate, Meagher & Flom LLP

"Inside the Courts: An Update from Skadden Securities Litigators"

We are pleased to present Inside the Courts (Volume 8, Issue 4), Skadden’s securities litigation newsletter. This quarter’s issue includes summaries and associated court opinions of selected cases principally decided between...more

Katten Muchin Rosenman LLP

Bridging the Week - October 2016

CME Group Settles With Trading Firm for Spoofing-Type Offenses, Holding It Strictly Liable for Acts of Agents; Orders Disgorgement of Profits - CME Group brought and settled disciplinary actions against Geneva Trading...more

A&O Shearman

EU Final Legislation on Requirements for Firms to Hold Information on Financial Contracts

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A Commission Delegated Regulation outlining Regulatory Technical Standards specifying the information on financial contracts that a firm may be required to maintain was published in the Official Journal of the European...more

Dorsey & Whitney LLP

Investing in Law Suits – Just Another Offering Fraud Says SEC

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The lure of big profits from the settlement of large personal injury law suits was the hook used by a lawyer and his partner to attract investors to Prometheus Law. The thought of all those dollars — virtually riskless...more

Jackson Walker

Selected Drafting Issues In Midstream Contracts

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I will share a small secret – or perhaps, it is not a secret at all. As CLE presentations go, “drafting tip” presentations tend to be very practical in their orientation and are, therefore, more enjoyable and less stressful...more

Katten Muchin Rosenman LLP

CFTC’s Energy and Environmental Markets Advisory Committee to Meet on July 29

The Commodity Futures Trading Commission’s Energy and Environmental Markets Advisory Committee will hold a public meeting on July 29. The Advisory Committee will discuss how energy and environmental markets would be affected...more

Katten Muchin Rosenman LLP

Corporate & Financial Weekly Digest - Volume X, Issue 27

In this issue: - Court of Appeals for Third Circuit Overturns District Court Ruling Regarding Exclusion of Shareholder Proposal From Proxy Statement - FINRA Updates Its Interpretation of the SEC's Financial...more

Latham & Watkins LLP

Updated: CFTC Clarifies Regulation of Forward Contracts with Embedded Volumetric Optionality

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With recent release, the CFTC hopes to eliminate market uncertainty on forward contracts with embedded volumetric optionality. UPDATE (June 18, 2015): On May 12, 2015, the CFTC adopted the Proposal as proposed (as used...more

Eversheds Sutherland (US) LLP

SEC Proposes Disclosure Rules on Director, Officer and Employee Hedging

In April 2015, the comment period expired for rules proposed by the U.S. Securities and Exchange Commission (the SEC) to implement Section 955 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank...more

Stinson - Corporate & Securities Law Blog

CFTC Issues Final Interpretation on Forward Contracts with Embedded Volumetric Optionality

Recently, the CFTC published a final interpretation clarifying its seven-element test regarding forward contracts with embedded volumetric optionality (EVO). The final interpretation provides that a contract for deferred...more

McGuireWoods LLP

Swaps End-User Update: CFTC Provides Helpful Interpretation for Forward Contracts with Embedded Volumetric Optionality

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On May 12, 2015, the U.S. Commodity Futures Trading Commission (CFTC) issued its final interpretation (Final Interpretation) to clarify when a nonfinancial commodity contract that contains “embedded volumetric optionality”...more

Morrison & Foerster LLP

CFTC and SEC Issue Final Interpretation Regarding Forward Contracts with Embedded Volumetric Optionality - May 2015

On May 12, 2015, the Commodity Futures Trading Commission (“CFTC”) and Securities and Exchange Commission (“SEC”) jointly issued the CFTC’s final interpretation clarifying its interpretation concerning forward contracts with...more

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