LIBOR Transition – ISDA Prepares to Launch 2020 IBOR Fallbacks Protocol and Supplement
October 19, 2020Client Alerts Following a favorable review from the Antitrust Division of the U.S. Department of Justice, the International Swaps and Derivatives Association (“ISDA”) announced on October 9, 2020 that it intends to publish a protocol, along with updates to its standardized documentation to provide for fallback rates and procedures to account for the potential discontinuation of certain…
Helping Clients Navigate COVID-19 (Updating)
August 18, 2020Client Alerts, FEATURED PUBLICATION Kleinberg Kaplan is working closely with our clients to provide counsel and guidance during these unprecedented times. A selection of our recent thought leadership pieces related to the implications of COVID-19 includes: Corporate Considerations The PPP Just Got Better (June 10, 2020): Chris Davis, Dov Kleiner, Uri Rosenwasser and Benjamin Goldman discuss the key highlights of the…
SEC Sets LIBOR Transition Preparedness as an Examination Initiative
July 21, 2020Client Alerts The LIBOR transition encompasses far-ranging legal issues that impact the investment management industry, including the potential impact on trading and derivatives portfolios, fund performance targets within fund documentation, financing and brokerage arrangements, and a wide range of operational and other issues that need to be considered by managers. Background LIBOR (London Interbank Offered Rate) is…
CFTC Proposes Rule Amendments to Expand Exemptions for Non-U.S. Commodity Pool Operators
June 9, 2020Client Alerts On May 28, 2020, the Commodity Futures Trading Commission (“CFTC”) approved proposed amendments to CFTC Regulation 3.10(c), which currently provides a jurisdictional based registration exemption for non-U.S. commodity pool operators (“CPOs”) that operate non-U.S. funds with non-U.S. investors (the “Proposed Amendments”). Historically, the CPO registration exemption available under Regulation 3.10(c)(3) has presented challenges for non-U.S.…
NY Fed Announces First Subscription and Closing Dates for TALF 2.0 and Provides Expanded FAQ Responses
May 21, 2020Client Alerts On May 20, 2020, the Federal Reserve Bank of New York (the “New York Fed”) announced June 17, 2020 as the first subscription date and June 25, 2020 as the first closing date of the Term Asset-Backed Loan Facility (“TALF 2.0”). The Board of Governors of the Federal Reserve System first authorized TALF 2.0 on March…
Fed Announces More Updates to TALF 2.0 and New List of FAQs
May 13, 2020Client Alerts On May 12, 2020, the Federal Reserve Board (the “Fed”) updated its term sheet of the Term Asset-Backed Loan Facility (“TALF 2.0”) that it authorized on March 23, 2020 and updated on April 9, 2020. The full updated term sheet can be found here. The Fed also released a list of frequently asked questions (“FAQs”)…
Kleinberg Kaplan Partner Jared R. Gianatasio Quoted in Debtwire
April 16, 2020Firm News Kleinberg Kaplan Partner Jared R. Gianatasio discussed the Federal Reserve’s new Term Asset-Backed Securities Loan Facility (“TALF”) in an interview with Debtwire. Jared shares his thoughts on possible further updates to the program that investors should monitor as TALF moves towards implementation. Read the full article, “TALF funding expected to flow by mid/late May; further expansion…
Fed Updates Terms of TALF 2.0
April 10, 2020Client Alerts On April 9, 2020, the Federal Reserve Board (the “Fed”) updated its term sheet of the Term Asset-Backed Loan Facility (“TALF 2.0”) that it authorized on March 23, 2020. The key changes include: updates to the definition of eligible borrower, additions to the types of eligible collateral, changes to loan pricing, and the release of…
TALF 2.0: Fed Revives Term Asset-Backed Loan Facility
April 1, 2020Client Alerts On March 23, 2020, the Federal Reserve Board (the “Fed”) authorized the revival of its Term Asset-Backed Loan Facility (“TALF 2.0”) previously established following the 2008 financial crisis. TALF 2.0 is a credit facility intended to support the asset-backed securities (“ABS”) markets for consumers and businesses by creating a new source of stable funding for investors…
CFTC and NFA Extend CPO/CTA Filing Deadlines for Certain Filing and Reporting Requirements
March 24, 2020Client Alerts On March 20, 2020, the Commodity Futures Trading Commission (the “CFTC”) provided temporary no-action relief to registered commodity pool operators (“CPOs”) by extending the filing timeline for certain ongoing reporting/filing obligations. The CFTC’s no-action letter provides an extension for the following:(i) filing Form CPO-PQR under Regulation 4.27, (ii) submitting pool annual reports under Regulations 4.7(b)(3)…
CFTC Extends Initial Margin Compliance Timeline for Many Buy-Side Firms
March 20, 2020Client Alerts On March 18, 2020, the Commodity Futures Trading Commission (the “CFTC”) voted unanimously to extend the uncleared swap initial margin compliance timeline for financial entities with smaller swap portfolios from September 1, 2020 to September 1, 2021. Phase 6 Compliance Group The newly created “Phase 6” compliance group will provide many private funds and other…
Buy-Side Checklist for Potential Impacts on Counterparty Trading Arrangements
March 18, 2020Client Alerts With the increasing concerns surrounding the impact of COVID-19 around the world, global financial markets are facing a unique set of difficulties. Fund managers, family offices and other buy-side market participants should consider reviewing their counterparty trading and brokerage arrangements to understand the impact of these events on their trading portfolios and their counterparties. Below…
CFTC Simplifies Rules for Asset Managers
January 6, 2020Client Alerts Recently, the U.S. Commodity Futures Trading Commission (the “CFTC”) approved amendments to Regulations 4.5, 4.7, 4.13, 4.14, and 4.27 that will impact investment managers that are operating funds that fall within the definition of a commodity pool. These new regulations will take effect on January 9, 2020.[1] Some key highlights of the amendments include: •…
NFA Implements New Testing Requirements for Swap Associated Persons
December 3, 2019Client Alerts Beginning January 31, 2021, all swap associated persons and their supervisors (“APs”) will be required to satisfy the National Futures Association’s (the “NFA”) new swaps proficiency requirements. These requirements will apply to, among others, APs of investment managers registered with the NFA as commodity pool operators (“CPOs”) or commodity trading advisors (“CTAs”) that engage in…
Update: NFA Releases Effective Date(s) for Interpretive Notice Establishing Disclosure Requirements for Registered CPOs/CTAs Engaging in Virtual Currency Activities
August 16, 2018Client Alerts, FEATURED PUBLICATION On July 20, 2018, the National Futures Association (“NFA”) issued an interpretive notice (the “Interpretive Notice”) detailing new disclosure requirements for registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to address certain risks stemming from the recent growth of the virtual currency and virtual currency derivatives markets.[1] On August 9, 2018, the NFA issued…
NFA Issues New Disclosure Requirements for Registered CPOs/CTAs Engaging in Virtual Currency Activities
August 7, 2018Client Alerts, FEATURED PUBLICATION On July 20, 2018, the National Futures Association (“NFA”) issued new disclosure requirements for registered commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to address certain risks stemming from the recent growth of the virtual currency and virtual currency derivatives markets. The new requirements will require, among other things, CPOs and CTAs trading in…
NFA to Develop Swap Testing Program
June 14, 2018Client Alerts, FEATURED PUBLICATION On June 5, 2018, the Board of the National Futures Association (NFA) approved the development of a proficiency requirements program for “associated persons” (APs) of registered commodity pool operators (CPOs) and commodity trading advisors (CTAs) engaged in swaps activities. The proficiency program will be in the form of an online learning program with an embedded…
CFTC Modernizes Recordkeeping Requirements
July 14, 2017Client Alerts, FEATURED PUBLICATION Overview The U.S. Commodity Futures Trading Commission (CFTC) recently adopted amendments to CFTC Regulation 1.31 (Final Rule), which governs the recordkeeping obligations for any person required by the Commodity Exchange Act (CEA) or CFTC regulations to maintain such records, including registered commodity pool operators and commodity trading advisors. While the Final Rule amendments do not…
Swap Margin Requirements: U.S. Banking and EU Regulators Issue Guidance on March 1st Delay
February 28, 2017Client Alerts, FEATURED PUBLICATION With the upcoming March 1st effective date for the global variation margin rules for uncleared swaps quickly approaching, US and EU regulators issued guidance on February 23, 2017 that may have the effect of easing requirements for certain market participants in complying with the March 1st deadline. The move by the agencies is in response…
Swap Margin Requirements: CFTC Provides Limited Grace Period to September 1, 2017
February 15, 2017Client Alerts, FEATURED PUBLICATION On February 13th, consistent with the requests from a number of market participants and trade organizations, including SIFMA and ISDA, a division of the U.S. Commodity Futures Trading Commission (CFTC) indicated that it would delay enforcement of the variation margin rules for uncleared swaps that are due to go into effect for swaps with financial…
