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Buy-Side Checklist for Potential Impacts on Counterparty Trading Arrangements

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…

Client Alerts | March 18, 2020 | Derivatives | Private Equity Funds | Hedge Funds

NFA Implements New Testing Requirements for Swap Associated Persons

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…

Client Alerts | December 3, 2019 | Hedge Funds | Derivatives

NFA to Develop Swap Testing Program

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…

Client Alerts | June 14, 2018 | Derivatives | Hedge Funds

CFTC Modernizes Recordkeeping Requirements

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…

Client Alerts | July 14, 2017 | Derivatives | Hedge Funds

Swap Margin Requirements: U.S. Banking and EU Regulators Issue Guidance on March 1st Delay

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…

Client Alerts | February 28, 2017 | Derivatives | Hedge Funds

Swap Margin Requirements: CFTC Provides Limited Grace Period to September 1, 2017

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…

Client Alerts | February 15, 2017 | Derivatives | Hedge Funds

Broader U.S. Withholding on Dividend Equivalent Amounts is Effective Beginning on January 1, 2017, for Agreements Entered Into On or After Such Date

In General Section 871(m) of the U.S. Internal Revenue Code of 1986, as amended, was enacted in 2010 and imposes a 30% U.S. withholding tax (subject to reduction by an applicable tax treaty) on dividend equivalent amounts paid (or deemed paid) on certain swaps and equity linked instruments referencing U.S. equities if the long party…

Client Alerts | November 18, 2016 | Derivatives | Hedge Funds

ISDA Extends Deadline for Adherence to 2014 ISDA Credit Derivatives Definitions Protocol

As discussed in our September 9, 2014 Legal Update “ISDA ISSUES 2014 CREDIT DERIVATIVES DEFINITIONS AND RELATED PROTOCOL,” the International Swaps and Derivatives Association (“ISDA”) has issued the 2014 Credit Derivatives Definitions (the “2014 Definitions”), which are expected to govern credit derivatives trades starting on September 22, 2014. ISDA has also issued a Protocol for…

Client Alerts | September 15, 2014 | Derivatives

ISDA Issues 2014 Credit Derivatives Definitions and Related Protocol

The International Swaps and Derivatives Association (“ISDA”), the trade group for the over- the-counter derivatives industry, has issued the 2014 Credit Derivatives Definitions (the “2014 Definitions”) which are expected to govern credit derivative trades starting on September 22, 2014. The 2014 Definitions reflect numerous changes to the 2003 Credit Derivative Definitions (the “2003 Definitions”) which…

Client Alerts | September 8, 2014 | Derivatives | Securities and Corporate Finance | Hedge Funds

Adherence with the ISDA Dodd-Frank March 2013 Protocol

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