Insights

As discussed in our previous alert, End-user Adherence with the ISDA August 2012 Dodd-Frank Protocol, over-the-counter derivatives trades between dealers and end-users are generally governed by master agreement forms and other documentation published by the International Swaps and Derivatives Association, Inc. (“ISDA”). Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank…

Client Alerts | May 31, 2013 | Derivatives | Hedge Funds

Introduction The staff of the Securities and Exchange Commission (the “SEC”) recently issued a Risk Alert highlighting violations of the Custody Rule. These violations were observed in the course of the SEC’s National Examination Program (the “NEP”) of registered investment advisers. Rule 206(4)-2 (the “Custody Rule”) under the Investment Advisers Act of 1940, as amended…

Client Alerts | April 22, 2013 | Hedge Funds

This update is a reminder that the May 1, 2013 deadline to adhere to ISDA August 2012 Dodd Frank Protocol (the “Protocol”) is approaching. To continue trading swaps, all end users (e.g., hedge funds, private equity funds and commercial end users) will need to adhere to the Protocol. As of May 1, 2013, Swap Dealers…

Client Alerts | February 28, 2013 | Securities and Corporate Finance | Hedge Funds

On November 29, 2012, the Commodity Futures Trading Commission (“CFTC”) announced that it will provide temporary no-action relief for operators of certain funds-of-funds (“FOF”) from the CFTC’s requirements for registration of Commodity Pool Operators (“CPO”). The CFTC recognized that absent such relief, FOF operators may be required to register with the CFTC as CPOs by…

Client Alerts | December 18, 2012 | Securities and Corporate Finance | Hedge Funds

On December 18, 2012, the U.S. Commodity Futures Trading Commission (the “CFTC”) extended the compliance dates for many of its business conduct rules with which “Swap Dealers” and “Major Swap Participants” will be required to comply. Consequently, end-users (e.g., hedge funds, private equity funds and commercial end-users) will have until May 1, 2013 to adhere…

Client Alerts | December 17, 2012 | Securities and Corporate Finance | Hedge Funds

On November 16, 2012, the U.S. Department of the Treasury issued a final determination that exempts FX Swaps and FX Forwards (as defined below) from the definition of “swap” under the Commodity Exchange Act (the “Exemption”). Practical Implications for Hedge Fund Managers As a result of the Exemption, FX Forwards and FX Swaps will generally…

Client Alerts | December 6, 2012 | Securities and Corporate Finance | Hedge Funds

The Commodity Futures Trading Commission (the “CFTC”) and the Securities Exchange Commission (the “SEC” and together with the CFTC, the Commissions”), in consultation with the Board of Governors of the Federal Reserve System, have jointly adopted final rules and interpretations (the “Swap Rules”), pursuant to Section 721 of the Dodd-Frank Wall Street Reform and Consumer…

Client Alerts | November 19, 2012 | Securities and Corporate Finance | Hedge Funds

This annual newsletter briefly highlights certain tax issues and planning that hedge fund managers should consider (or reconsider) before year-end. Although tax planning at the end of each year is always important, tax planning at the end of 2012 is crucial due to potential tax rate increases. Even with the election over, there is still…

Client Alerts | November 12, 2012 | Hedge Funds

Over-the-counter derivatives trades between dealers and end-users are generally governed by master agreement forms and other documentation published by the International Swaps and Derivatives Association, Inc. (“ISDA”), the derivatives industry association. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) the trading of derivatives, including over-the-counter derivatives, is subject to…

Client Alerts | October 31, 2012 | Derivatives | Hedge Funds

On October 18, 2011, the Commodity Futures Trading Commission (the “CFTC”) adopted final rules (the “Position Limit Rules”), pursuant to Section 737 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) that set position limits for certain futures contracts, options contracts and swaps on 28 agricultural, energy, and metal commodities (the…

Client Alerts | October 15, 2012 | Securities and Corporate Finance | Hedge Funds