What End-Users of Derivatives Need to Know About the Dodd-Frank Act
|
|
- Anne Atkins
- 5 years ago
- Views:
Transcription
1 What End-Users of Derivatives Need to Know About the Dodd-Frank Act Prepared By: The Securities and Futures Regulation Group
2 Many companies, both large and small, enter into over-the-counter (OTC) derivatives transactions with a bank or other dealer in order to hedge commercial risks. For example, a company can use an interest rate swap in order to lock in a favorable fixed interest rate; it can enter into an FX forward in order to fix the currency exchange rate at a specified future date; or it can enter into an OTC commodity option in order to establish the maximum price that it will be required to pay for a commodity (e.g., steel or gasoline) that it needs to operate its business. The Dodd-Frank Act will have a major impact on the regulation of the markets in the United States for OTC derivatives and of the participants in those markets. Although the Dodd-Frank Act was adopted in July 2010, many of the rules needed to implement the Act only recently were adopted by the Commodity Futures Trading Commission (CFTC), and other rules are expected to be adopted later in This Client Update uses a question and answer format to highlight those aspects of the Dodd-Frank Act that will have the greatest impact on end-users of derivatives, and it explains what end-users will need to do in order to comply with the Act and implementing regulations. A. General Aspects of Dodd-Frank Regulation 1. Is my company an eligible contract participant (ECP)? Under the Dodd-Frank Act, an end-user must be an ECP in order to enter into an OTC derivatives transaction. End-users typically qualify as ECPs in one of two different ways: as either a large entity or a hedging entity. Your company is a large entity if it has assets of $10 million or more. Your company is a hedging entity if it has a net worth exceeding $1 million and is entering into the transaction in order to manage a risk associated with an asset or liability owned or incurred by the company in the conduct of its business. 2. Will my company be required to register with the CFTC? 1 The Dodd-Frank Act allocates regulatory oversight of the OTC derivatives market between the CFTC and the SEC based on the nature of the instrument or commodity underlying the derivatives. It generally grants authority to the SEC to regulate the markets and participants in security-based swaps and grants authority to the CFTC to regulate the markets and participants in all other swaps. This Client Update will not address security-based swaps. 2
3 The Dodd-Frank Act requires certain types of market participants known as a swap dealer and a major swap participant (MSP) to register with the CFTC. A swap dealer is an entity that holds itself out as a dealer in swaps, makes a market in swaps, or regularly enters into swaps in the ordinary course of its business (subject to a de minimis activity dealing threshold and other exceptions). An MSP is an entity that maintains a substantial position in swaps (i.e., it maintains a daily average aggregate uncollateralized current exposure of $1 billion or more in any major swap category). A typical end-user will not be deemed to be either a swap dealer or an MSP. B. Mandatory Clearing Requirement 3. What is the mandatory clearing requirement? One of the main goals of the Dodd-Frank Act is to cause certain types of OTC derivatives to move to an environment where they will be cleared by a regulated central counterparty i.e., a clearinghouse. The Act requires the clearing of all swaps that the CFTC determines should be cleared. Thus far, the CFTC has determined that certain interest rate and credit default swaps are subject to mandatory clearing. The implementation date for this requirement varies depending on the nature of the counterparties. For interest rate and credit default swaps involving end-users, the requirement to clear those swaps becomes mandatory on September 9, The CFTC has not yet made any determination for the mandatory clearing of other types of swaps. When enacting the Dodd-Frank Act, Congress was aware that imposing a clearing requirement on end-users of swaps would impose certain costs and other burdens on American businesses. With central clearing, persons holding positions in swaps must deposit initial margin in the form of specified liquid assets and must be prepared to make variation margin payments in cash as their positions are marked to the market on a daily basis. Accordingly, the Act contains an exception (known as the end-user exception) from the clearing requirement. This exception is discussed below. 4. Can my company use the end-user exception? To qualify for the end-user exception, your company needs to meet three requirements: (1) your company must not be a financial entity, (2) it must be using the swap to hedge or mitigate 3
4 commercial risk, and (3) it must notify the CFTC how it plans to meet the financial obligations related to uncleared derivatives. The end-user exception applies on a swap-by-swap basis, and these requirements must be met for each uncleared swap that is subject to the mandatory clearing requirement. You should carefully determine whether use of the end-user exception is appropriate because abuse of the exception can involve heavy penalties. The Dodd-Frank Act makes it a felony punishable by a fine of not more than $1 million, a prison sentence not to exceed 10 years in prison, or both, for abusing this exception. The elements of the end-user exception are described below: Not a financial entity. Generally, financial entities cannot use the end-user exception. Swap dealers, MSPs, private funds, commodity pools, and certain employee benefit plans are financial entities. Also, any business primarily engaged in banking or other financial activities is a financial entity. In the following situations, a financial entity is deemed not to be a financial entity for purposes of the first requirement of the end-user exception: (a) a depository institution with less than $10 billion in total assets; (b) a captive finance company that primarily provides financing and uses derivatives to hedge commercial risk related to foreign currency and interest rate exposures, at least 90% of which are from providing financing for purchasing or leasing products that are manufactured by its parent company; and (c) a financial entity acting as an agent for a company that is eligible for the end-user exception. Swap used to hedge or mitigate commercial risk. Generally, if the swap is economically appropriate to reduce your company s business risks, even financial risk, it is being used to hedge or mitigate commercial risk. The overall reason your company engages in the swap is also important. Swaps that are entered into for speculative purposes will not qualify for the end-user exception. 4
5 Notify the CFTC how your company will meet its financial obligations associated with the swap. If your company chooses not to clear swaps by relying on the end-user exception, it will have to provide certain information about its eligibility for the exception to a swap data repository (SDR). Your company should indicate how it plans to meet its financial obligations regarding the swap by checking off applicable items from a list of choices. This information should be reported annually and updated if any of the information changes materially. 5. What internal approvals does my company need to use the end-user exception? If your company is a publicly traded company, the decision to use the end-user exception should be reviewed and approved by the board of directors or a committee of the board. The board or committee should set appropriate policies governing the use of swaps subject to the end-user exception and should review such policies annually or whenever there is a material change in the company s hedging strategy. If your company is not a publicly traded company, its normal approval process is sufficient. 6. May my company choose to clear its swaps even though it could use the end-user exception? Yes. The end-user exception is at the option of the end-user. If the end-user chooses not to exercise the exception, then the swap must be cleared. 7. Does mandatory clearing apply to inter-affiliate swaps? Generally, no. The CFTC adopted a rule that exempts swaps between affiliated entities within a corporate group (whose financial statements are consolidated) from the mandatory clearing requirement, provided that certain conditions are met. As with the end-user exception, each affiliate must indicate how it plans to meet its financial obligations regarding the uncleared swaps. If an affiliate is publicly traded, it must satisfy the approval process discussed above in Question 5. C. Reporting and Recordkeeping Requirements 8. What are my company s new reporting obligations, and how does it prepare for them? 5
6 For reporting purposes, corporate end-users must obtain a legal entity identifier (LEI), which is a unique number that identifies each entity that enters into swap transactions. Obtaining an LEI, also known as a CICI (CFTC Interim Compliant Identifier), is relatively easy. You can either register your company yourself by completing the application at or you can have a third party, such as an attorney, register your company and obtain the CICI for you. The deadline for obtaining your CICI is April 10, Under the CFTC s rules, only the reporting party is required to report specified information about swap transactions. When only one counterparty to a swap is a U.S. person, the U.S. person shall be the reporting party. When both counterparties to the swap are U.S. persons, the reporting party is determined as follows: If one counterparty to the swap is a swap dealer or MSP, that party shall be the reporting party. If neither counterparty is a swap party or MSP, but one counterparty is a financial entity, then the financial entity shall be the reporting party. If neither counterparty is a swap dealer, MSP, or financial entity, then the counterparties to the swap shall decide which of them will be the reporting party. The Dodd-Frank Act imposes additional reporting and documentation requirements and business conduct standards for swap dealers and MSPs that require them to gather additional information from their counterparties. MSPs and swap dealers may require their counterparties to amend their existing ISDA master agreements. In response to these requirements, ISDA created the Dodd-Frank Frank Protocol, an online protocol that allows a swap user to update all of its existing agreements easily. If your company chooses to use the Protocol, you will need to submit an adherence letter to ISDA, pay an adherence fee, and complete a detailed questionnaire outlining various information about your company, such as corporate status and your CICI number. You should be aware that there is no regulatory requirement to follow the Dodd-Frank Protocol. Instead, your company may choose to provide the new information to each of its swap counterparties separately. However, because the Protocol makes meeting the new reporting 6
7 requirements so much easier for MSPs and swap dealers, they may require your company to comply with the Protocol before they will do business with you. 9. What are my company s new recordkeeping obligations, and how does it comply with them? As of April 10, 2013, your company must comply with new recordkeeping requirements regarding the type of information that must be maintained for each swap and the manner in which it is kept. All swap records must be kept for five years after the termination of the swap, and must be retrievable within five business days. The type of information your company must keep about its swaps depends on whether the swaps are historical swaps or new swaps. Historical swaps include so-called preenactment and transition swaps. Pre-enactment swaps are swaps entered into before and still in existence on July 21, Transition swaps are swaps entered into on or after that date, but before April 10, New swaps are swaps entered into on or after the April 10, 2013, compliance date. For any pre-enactment swap that ended before April 25, 2011, your company must keep all information and documents regarding the swap that it had on or before October 14, For transition swaps that ended before April 25, 2011, your company must keep all information and documents it had on or after December 17, For any swap in existence after April 25, 2011, your company must keep records of all the primary economic terms specified in the CFTC s rules. These terms will vary depending on the type of swap. For all new swaps, your company must keep full, complete and systematic records, including those demonstrating how a swap is eligible for the end-user exception if your company used that exception. * * * If you have any questions about this Client Update or the application of the Dodd-Frank Act to your business operations, please call one of the members of our Securities and Futures Regulation Group listed on the following page. 7
8 Marguerite C. Bateman Paul E. Dengel Stacie R. Hartman Andrew M. Klein Michael L. Meyer Robert B. Wilcox Elyse K. Yang Craig Bridwell Jack P. Drogin Allan Horwich Matthew Kluchenek Rachel A. Remke Michael K. Wolensky Geoffrey H. Coll Paul E. Greenwalt III Jacob L. Kahn Leslie A. Maria Carl A. Royal John S. Worden About Schiff Hardin LLP Schiff Hardin LLP is a general practice law firm representing clients across the United States and around the world. We have offices located in Ann Arbor, Atlanta, Boston, Charlotte, Chicago, Lake Forest, New York, San Francisco and Washington. Our attorneys are strong advocates and trusted advisers roles that contribute to many lasting client relationships Schiff Hardin LLP This publication has been prepared for the general information of clients and friends of the firm. It is not intended to provide legal advice with respect to any specific matter. Under rules applicable to the professional conduct of attorneys in various jurisdictions, it may be considered advertising material. For more information visit our Web site at 8
COMMENTARY. Dodd-Frank Derivatives 101: What In-House. The Basics JONES DAY
November 2012 JONES DAY COMMENTARY Dodd-Frank Derivatives 101: What In-House Counsel Needs to Know Now So you are in-house counsel to a company that, either occasionally or on a regular basis, enters into
More informationDodd-Frank Title VII: Three Years Out, Still Buyer Beware
Dodd-Frank Title VII: Three Years Out, Still Buyer Beware July 11, 2013 Brought to you by Winston & Strawn s Derivatives Practice Group 2013 Winston & Strawn LLP Today s elunch Presenters Jennifer Genzler
More informationRegulatory Update The SEC Issues New Proposals to Restrict Short Selling
Regulatory Update The SEC Issues New Proposals to Restrict Short Selling Distributed by: The Securities and Futures Regulation Group May 2009 SCHIFF HARDIN LLP 6600 Sears Tower Chicago, IL 60606 t 312.258.5500
More informationMARCH 2014 KEY RECENT DEVELOPMENTS. 1. Overview of FX Swap Regulatory Framework
Wsgr alert MARCH 2014 Fourth update: dodd-frank rules Impact end-users of ForeIgn exchange derivatives KEY RECENT DEVELOPMENTS This March 2014 update is a summary of certain recent developments under the
More informationImpact on End Users of Swaps
Dodd-Frank One-Year Anniversary: Impact on End Users of Swaps Presented by Daniel N. Budofsky Susan C. Ervin Gabriel D. Rosenberg (Moderator) July 28, 2011 Davis Polk & Wardwell LLP Presenters Daniel N.
More informationADOPTING THE AUGUST 2012 ISDA PROTOCOL FOR DODD FRANK SWAP REQUIREMENTS
ADOPTING THE AUGUST 2012 ISDA PROTOCOL FOR DODD FRANK SWAP REQUIREMENTS Thompson & Knight Notes on the ISDA August 2012 DF Protocol (the Protocol ) I. Introduction 1 The Protocol is the first of a planned
More informationKey Dodd-Frank Compliance Considerations for End-Users
August 31, 2012 Key Dodd-Frank Compliance Considerations for End-Users Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act ) requires the CFTC and SEC
More informationThe road to reform. Helping commercial end users of OTC derivatives comply with Dodd-Frank s Title VII
The road to reform Helping commercial end users of OTC derivatives comply with Dodd-Frank s Title VII Wide-ranging impact A survey conducted by the International Swaps & Derivatives Association (ISDA)
More informationLEGISLATIVE DEVELOPMENTS
In This Issue: CFTC DEVELOPMENTS... 1 LEGISLATIVE DEVELOPMENTS... 1 ACTIONS TO IMPLEMENT DODD-FRANK... 2 OTHER CFTC REGULATORY ACTIONS... 4 CFTC ENFORCEMENT ACTIONS... 5 BANKRUPTCY LAW DEVELOPMENTS...
More informationConsiderations for End-Users January 2014
2014 Morrison & Foerster LLP All Rights Reserved mofo.com Considerations for End-Users January 2014 Title VII for End-Users Title VII has as its objectives Reducing systemic risk posed by the swaps market
More informationDodd Frank and inter affiliate trading of derivatives
Financial Accounting Advisory Services Dodd Frank and inter affiliate trading of derivatives Impact of new derivatives regulations becomes clearer, but key questions remain New regulations in the US under
More informationMAJOR NEW DERIVATIVES REGULATION THE SCIENCE OF COMPLIANCE
Regulatory June 2013 MAJOR NEW DERIVATIVES REGULATION THE SCIENCE OF COMPLIANCE Around the world, new derivatives laws and regulations are being adopted and now implemented to give effect to a 2009 agreement
More informationADVISORY Dodd-Frank Act
ADVISORY Dodd-Frank Act May 7, 2012 CFTC AND SEC JOINTLY ADOPT FINAL SWAP ENTITY DEFINITION RULES On April 18, 2012, the Commodity Futures Trading Commission ( CFTC ) and the Securities and Exchange Commission
More informationDe r i vat i v e s a n d
De r i vat i v e s a n d Trading Update July 2010 Analysis of the Dodd-Frank Wall Street Reform Act OTC Derivatives Reform: Wall Street Transparency and Accountability Act of 2010 I. Introduction Title
More informationDERIVATIVES & STRUCTURED PRODUCTS
DERIVATIVES & STRUCTURED PRODUCTS A Corporate End User s Handbook for Dodd-Frank Derivatives Compliance 31 JANUARY 2018 IN THIS ISSUE: I. Introduction II. Eligible Contract Participant Requirement III.Mandatory
More informationDodd-Frank Act: Are You Ready? Mark. R. Haskell, Floyd L. Norton, IV, Michael M. Philipp, Levi McAllister
Dodd-Frank Act: Are You Ready? Mark. R. Haskell, Floyd L. Norton, IV, Michael M. Philipp, Levi McAllister www.morganlewis.com Dodd-Frank Act: Are You Ready The audio will remain quiet until we begin. We
More informationCOMMENTARY. Potential Impact of the U.S. Dodd-Frank Act JONES DAY
March 2013 JONES DAY COMMENTARY Potential Impact of the U.S. Dodd-Frank Act and Global OTC Derivatives Regulations In connection with any over-the-counter ( OTC ) derivatives transactions you execute with
More informationPRACTICAL IMPLICATIONS
PRACTICAL IMPLICATIONS OF DERIVATIVES REFORM GORDON F. PEERY and STUART E. FROSS K&L GATES LLP Boston, MA September 21, 2010 1 Agenda Introduction Speakers Late-Breaking Developments: Developments in August
More informationADVISORY Dodd-Frank Act
ADVISORY Dodd-Frank Act August 5, 2013 CFTC ISSUES FINAL INTERPRETIVE GUIDANCE AND POLICY STATEMENT AND EXEMPTIVE ORDER REGARDING CROSS-BORDER APPLICATION OF DODD-FRANK ACT SWAP PROVISIONS On July 12,
More informationCLIENT UPDATE FINAL CFTC RULES ON CLEARING EXEMPTION FOR SWAPS BETWEEN CERTAIN AFFILIATED ENTITIES
CLIENT UPDATE FINAL CFTC RULES ON CLEARING EXEMPTION FOR SWAPS BETWEEN CERTAIN AFFILIATED ENTITIES NEW YORK Byungkwon Lim +1 212 909 6571 blim@debevoise.com Emilie T. Hsu +1 212 909 6884 ehsu@debevoise.com
More informationNorth American Power Credit Organization
North American Power Credit Organization Practical considerations associated with the Dodd-Frank Act (3:15pm 5:00pm) 2 May 2013 Agenda and contents Dodd-Frank overview and highlights 3-6 Industry snapshot
More informationClient Advisory. Treasury Proposes Legislation Overhauling Regulation of Over-the-Counter Derivatives. Financial Services
Client Advisory Financial Services August 13, 2009 Treasury Proposes Legislation Overhauling Regulation of Over-the-Counter Derivatives On August 11, the U.S. Department of the Treasury (the Treasury )
More informationDerivatives Regulation Update: Latest Developments and What to Expect in 2016
Derivatives Regulation Update: Latest Developments and What to Expect in 2016 Thursday, January 14, 2016, 12:00PM 1:30PM EST Presenters: Julian Hammar, Of Counsel, Morrison & Foerster LLP James Schwartz,
More informationDodd-Frank Title VII Considerations for End-Users March 5-6, 2013 Presented by David H. Kaufman and Chrys A. Carey
Dodd-Frank Title VII Considerations for End-Users March 5-6, 2013 Presented by David H. Kaufman and Chrys A. Carey 2013 Morrison & Foerster LLP All Rights Reserved mofo.com Preliminary Observations Program
More informationRegulatory Update SEC Adopts Rule Excluding Broker-Dealers Offering Fee-Based Accounts from the Investment Advisers Act of 1940
Regulatory Update SEC Adopts Rule Excluding Broker-Dealers Offering Fee-Based Accounts from the Investment Advisers Act of 1940 April 29, 2005 Distributed By: The Securities and Futures Market Regulation
More informationDodd-Frank Title VII Update: Where Are We Today and Where Are We Going? Ten Important Issues Facing Derivatives Users
Dodd-Frank Title VII Update: Where Are We Today and Where Are We Going? Ten Important Issues Facing Derivatives Users Nov 07, 2011 Top Ten By James M. Cain This resource is sponsored by: Where Are We Today?
More informationCOMMODITY FUTURES TRADING COMMISSION. Amended Order Designating the Provider of Legal Entity Identifiers to be Used in
This document is scheduled to be published in the Federal Register on 06/28/2013 and available online at http://federalregister.gov/a/2013-15477, and on FDsys.gov 6351-01-P COMMODITY FUTURES TRADING COMMISSION
More informationOn July 21, 2010, President Obama signed into law the Dodd-Frank
S k a d d e n, A r p s, S l a t e, M e a g h e r & F l o m L L P & A f f i l i a t e s If you have any questions regarding the matters discussed in this memorandum, please contact the following attorneys
More informationClient Alert. CFTC Issues a Flurry of No-Action Letters and Guidance as New Swap Regulations Become Effective. Swap Entity Definition Guidance
Number 1425 November 6, 2012 Client Alert Latham & Watkins Corporate Department CFTC Issues a Flurry of No-Action Letters and Guidance as New Swap Regulations Become Effective Between October 10 and October
More informationDemystifying Dodd Frank s Impact on Corporate Hedging
Demystifying Dodd Frank s Impact on Corporate Hedging Overview Section 1: Dodd Frank on Swaps and the End User Section 2: How Companies Can prepare Section 3: What Tools are Available? 2 Section 1: End
More informationCFTC and SEC Issue Final Swap-Related Rules Under Title VII of Dodd-Frank
CFTC and SEC Issue Final Swap-Related Rules Under Title VII of Dodd-Frank CFTC and SEC Issue Final Rules and Guidance to Further Define the Terms Swap Dealer, Security-Based Swap Dealer, Major Swap Participant,
More informationProposed Rules for End-User Exception to Clearing of Swaps
CRAVATH, SWAINE & MOORE LLP Please feel free to contact us if we can provide further information on these matters. John W. White 212-474-1732 jwhite@cravath.com B. Robbins Kiessling 212-474-1500 bkiessling@cravath.com
More informationPotential Impact to Foreign Exchange Risk Management - Dodd-Frank Bill!
Potential Impact to Foreign Exchange Risk Management - Dodd-Frank Bill! April 7, 2011 Presented by: Mary Ann Dowling, Principal 2011 Treasury Strategies, Inc. All rights reserved. Dodd-Frank Act Passed
More informationThe CFTC Adopts Final Rules on the Recordkeeping and Reporting of Historical Swaps
The CFTC Adopts Final Rules on the Recordkeeping and Reporting of Historical Swaps June 20, 2012 The U.S. Commodity Futures Trading Commission (the CFTC ) has adopted final rules governing the recordkeeping
More informationCFTC Proposes First Clearing Mandate and Finalizes Phased Compliance Rules
AUGUST 10, 2012 DERIVATIVES UPDATE CFTC Proposes First Clearing Mandate and Finalizes Phased Compliance Rules On July 24, 2012, the Commodity Futures Trading Commission ( CFTC ) proposed its first clearing
More informationPLI Advanced Swaps & Other Derivatives 2016 Clearing Panel. Customer Funds Segregation for Cleared Derivatives Under the CEA Framework
PLI Advanced Swaps & Other Derivatives 2016 Clearing Panel Customer Funds Segregation for Cleared Derivatives Under the CEA Framework Kathryn M. Trkla, Partner 312-832-5179 ktrkla@foley.com Attorney Advertising
More informationDodd Frank Update: Impact on Gas & Power Transactions
The University of Texas School of Law Presented: 10 th Annual Gas & Power Institute September 22-23, 2011 Houston, Texas Dodd Frank Update: Impact on Gas & Power Transactions Craig R. Enochs Kevin M. Page
More informationClient Update CFTC Issues Preliminary Report on Swap Dealer De Minimis Exception
1 Client Update CFTC Issues Preliminary Report on Swap Dealer De Minimis Exception NEW YORK Byungkwon Lim blim@debevoise.com Aaron J. Levy ajlevy@debevoise.com On November 18, 2015, the Division of Swap
More informationensure the involvement of an adequate cross-section of market participants from the beginning of the implementation of the new regulatory regime.
THE PHASES OF REGULATIONS: THE CFTC PROPOSES IMPLEMENTATION SCHEDULES FOR CLEARING, TRADE EXECUTION, TRADING DOCUMENTATION AND MARGIN REQUIREMENTS September 19, 2011 To Our Clients and Friends: The Commodity
More informationComparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation September 26, 2013 Anna Pinedo James Schwartz
2013 Morrison & Foerster (UK) LLP All Rights Reserved mofo.com Comparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation September 26, 2013 Anna Pinedo James Schwartz
More informationADVISORY Dodd-Frank Act
ADVISORY Dodd-Frank Act January 19, 2012 CFTC FINALIZES RULES ON SWAP DATA RECORDKEEPING AND REPORTING AND REAL-TIME REPORTING On December 20, 2011, the Commodity Futures Trading Commission ( CFTC or Commission
More informationDodd Frank Update: Impact on Gas & Power Transactions
The University of Texas School of Law Presented: 10 th Annual Gas & Power Institute September 22-23, 2011 Houston, Texas Dodd Frank Update: Impact on Gas & Power Transactions Craig R. Enochs Kevin M. Page
More informationIntroduction to the Commercial End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps Under Title VII of the Dodd-Frank Act
March 2016 Practice Group: Investment Management, Hedge Funds and Alternative Investments Introduction to the Commercial End-User Exception to Mandatory Clearing of Swaps and Security-Based Swaps By Anthony
More informationImpact of Financial Reform On Energy Companies
Impact of Financial Reform On Energy Companies Lopa Parikh Director, Regulatory Affairs Edison Electric Institute NASUCA Annual Meeting Orlando, Florida November 19, 2013 Edison Electric Institute The
More informationAppendix C Application of the Entity-Level Requirements to Swap Dealers and MSPs*
VII. Appendix C Application of the Entity-Level Requirements to Swap Dealers and MSPs* U.S. Swap Dealer or MSP affiliate of a non-u.s.. Also applies when acting through a foreign branch. Swap Dealer or
More informationChapter 9. 9:1 General Review of Systemic Risk and Regulatory Developments
Chapter 9 Current Developments 9:1 General Review of Systemic Risk and Regulatory Developments 9:2 Dodd-Frank Act and OTC Derivatives 9:2.1 Regulator 9:2.2 Key Dodd-Frank Swap Definition 9:2.3 Categorization
More informationSwap Transaction Reporting Requirements
Swap Transaction Reporting Requirements This Q&A addresses swap transaction reporting requirements under Commodity Futures Trading Commission ( CFTC ) Regulations, Parts 43, 45 and 46. Real-Time Reporting
More informationAn Update and Overview of U.S. and Canadian Derivatives Reform
An Update and Overview of U.S. and Canadian Derivatives Reform Alexander Holtan, Counsel Sutherland Asbill & Brennan All Rights Reserved. This communication is for general informational purposes only and
More informationDodd Frank Swaps Regulation. David Lucking: Partner, New York
Dodd Frank Swaps Regulation David Lucking: Partner, New York Topics to be covered 1 2 3 4 5 6 Registration and Swap Dealer Duties Trade Execution Clearing Capital and Margin Reporting Expected Developments
More informationDodd-Frank Act OTC Derivatives Reform
Dodd-Frank Act OTC Derivatives Reform Supporting Materials for Panel Discussion OTC Derivatives Reforms at MFA s Regulatory Compliance Conference Compliance 2011, November 30, The Princeton Club, New York
More informationISDA Commentary on ESMA RTS on Confirmations (in European Commission Delegated Regulation C(2012) 9593 final (19 December 2012)) 29 January 2013
ISDA Commentary on ESMA RTS on Confirmations (in European Commission Delegated Regulation C(2012) 9593 final (19 December 2012)) 29 January 2013 A Introduction We welcome the opportunity to comment on
More informationEMIR and DODD-FRANK FAQs. January 2017
This FAQs document relates to: EMIR and DODD-FRANK FAQs January 2017 the European Market Infrastructure Regulation or EMIR, Regulation (EU) No 648/2012 of the European Parliament and of the Council of
More informationDodd-Frank's Eye On Energy Cos. Use Of Derivatives
Portfolio Media, Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Dodd-Frank's Eye On Energy Cos. Use Of Derivatives
More informationInterest Rate Risk Management Refresher. April 29, Presented to: Howard Sakin Section I. Basics of Interest Rate Hedging?
Interest Rate Risk Management Refresher April 29, 2011 Presented to: Howard Sakin 410-237-5315 Section I Basics of Interest Rate Hedging? 1 What Is An Interest Rate Hedge? Interest rate hedges are contracts
More informationQ&A Addressing SEC Proposed New Rule Regulating Funds Use of Derivatives
FEBRUARY 1, 2016 SIDLEY UPDATE Q&A Addressing SEC Proposed New Rule Regulating Funds Use of Derivatives On December 11, 2015, the Securities and Exchange Commission (SEC) voted to propose Rule 18f-4 (Proposed
More informationPractical guidance at Lexis Practice Advisor
Lexis Practice Advisor offers beginning-to-end practical guidance to support attorneys work in specific transactional practice areas. Grounded in the real-world experience of expert practitioner-authors,
More informationJuly 16, Key Takeaways: Contents
July 16, 2012 CFTC Proposes Interpretative Guidance on the Extraterritorial Reach of Title VII of the Dodd-Frank Act and Exemptive Relief to Extend Compliance Deadlines for Many Title VII Requirements,
More informationRegulatory Impact of. on the Energy Industry
Regulatory Impact of Dodd-Frank Act 2010 on the Energy Industry WSPP Committee Meeting New Orleans, Louisiana October 19, 2010 Anita Herrera Chief Compliance Officer 1 What is Nodal Exchange? Cash settled
More informationCFTC and Derivative Developments
2016 INVESTMENT MANAGEMENT CONFERENCE CFTC and Derivative Developments Michael W. McGrath, Partner, Boston Kenneth Holston, Of Counsel, Boston Copyright 2016 by K&L Gates LLP. All rights reserved. AGENDA
More informationCFTC Staff Issues Time-Limited No-Action Relief from Some Swap Data Reporting Requirements for Certain Counterparties
April 12, 2013 CFTC Staff Issues Time-Limited No-Action Relief from Some Swap Data Reporting Requirements for Certain Counterparties Key Takeaways: > Non-SD/MSP financial entities now have until May 29,
More informationA View From the Street
A View From the Street Independent Petroleum Association of America 81 st Annual Meeting Tucson, Arizona November 9, 2010 Travis McCullough Director and Counsel DB Energy Trading LLC travis.mccullough@db.com
More informationDerivatives: How Do They Impact Your Client?
Derivatives: How Do They Impact Your Client? Dallas Bar Association Securities Section October 22, 2012 Craig Enochs Jackson Walker L.L.P. Overview What are derivatives? How are derivatives documented?
More informationPENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE
PTC 502005539 (12/05) Policy Subject: 7.7 - Interest Rate Swap Management Policy PENNSYLVANIA TURNPIKE COMMISSION POLICY AND PROCEDURE This is a statement of official Pennsylvania Turnpike Commission Policy
More informationIt s Not Just Registration: New Regulation of Swap Transactions by US and non-us Banks under the Dodd-Frank Act
New York Seminar Series It s Not Just Registration: New Regulation of Swap Transactions by US and non-us Banks under the Dodd-Frank Act Tuesday, June 12, 2012 arnoldporter.com New York Seminar Series Financial
More informationFutures & Derivatives Law
REPORT Reprinted with permission from Futures and Derivatives Law Report, Volume 36, Issue 7, K2016 Thomson Reuters. Further reproduction without permission of the publisher is prohibited. For additional
More informationThe Dodd-Frank Act implementation of the Volcker Rule
AUGUST 12, 2010 The Dodd-Frank Act implementation of the Volcker Rule By: Lloyd H. Spencer and William E. Kelly The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President
More informationEDF TRADING A leader in the international wholesale energy market. 27 February 2012
EDF TRADING A leader in the international wholesale energy market 27 February 2012 The Dodd-Frank Act Overview The Commodities Futures Trading Commission (CFTC) The Dodd-Frank Act What is it? What does
More informationCFTC Issues Final Rules on Cross- Border Uncleared Swap Margin Requirements
Client Alert Capital Markets CFTC Issues Final Rules on Cross- Border Uncleared Swap Margin Requirements August 2016 Authors: Ian Cuillerier, Rhys Bortignon The CFTC has combined an entity-level approach
More informationSwap Clearinghouses and Markets
Capital Markets 1 Swap Clearinghouses and Markets An objective of Title VII of the Dodd-Frank Act is to create a structure and incentives to expand preand post-execution transparency for swaps and security-based
More informationJanuary 18, To Our Clients and Friends:
SWAP DATA RECORDKEEPING AND REPORTING UNDER CFTC RULE PART 45 AND REAL-TIME PUBLIC REPORTING UNDER CFTC RULE PART 43 FOR SWAP COUNTERPARTIES THAT ARE NOT SWAP DEALERS OR MAJOR SWAP PARTICIPANTS January
More informationIntroduction to the U.S. Regulation of Cross-Border Transactions Involving Swaps and Security-Based Swaps
March 2016 Practice Group: Investment Management, Hedge Funds and Alternative Investments Introduction to the U.S. Regulation of Cross-Border Transactions Involving Swaps and Security-Based Swaps By Anthony
More informationISDA/Markit Collaboration on Dodd- Frank Protocol and Relevance to Asia
ISDA Documentation Initiatives July 25, 2012 Hong Kong ISDA/Markit Collaboration on Dodd- Frank Protocol and Relevance to Asia Cadwalader, Wickersham & Taft LLP Jeff Chen, Partner Jeff Robins, Partner
More informationCFTC Reporting and Recordkeeping Obligations: What General Counsels Need to Know AGA Legal Forum 2014 July 14, 2014 Presented By Julian E.
CFTC Reporting and Recordkeeping Obligations: What General Counsels Need to Know AGA Legal Forum 2014 July 14, 2014 Presented By Julian E. Hammar 2014 Morrison & Foerster LLP All Rights Reserved mofo.com
More informationTrade Repository Regulation and Framework
Trade Repository Regulation and Framework Introduction As current regulatory discussions focus on central clearing and trade repositories, this white paper will focus on the possible approach and set up
More informationDirect and Significant Connections: CFTC Provides Guidance on Extraterritoriality
News Bulletin July 2, 2012 Direct and Significant Connections: CFTC Provides Guidance on Extraterritoriality On June 29th, the CFTC published a proposed policy statement and interpretive guidance addressing
More informationEMIR. Annemarie Moore Group Treasurer Plan International
EMIR Annemarie Moore Group Treasurer Plan International What and Why 2009, G20 leaders agreed on reform of financial markets (regulation, transparency). European version called EMIR (European Markets Infrastructure
More informationClearing Exemption for Inter-Affiliate Swaps
CFTC Proposes Rule to Exempt Swaps between Certain Affiliated Entities from the Clearing Requirement under Dodd-Frank SUMMARY On August 16, 2012, the CFTC issued a proposed rule to exempt swaps between
More informationEU margin requirements for non-cleared derivatives: What do hedge fund managers need to know? Adam Jacobs-Dean Lucian Firth Allan Yip
EU margin requirements for non-cleared derivatives: What do hedge fund managers need to know? Adam Jacobs-Dean Lucian Firth Allan Yip 20 September 2016 Adam Jacobs-Dean Global Head of Markets Regulation
More informationCFTC Actions The Energy Industry Should Look For In 2015
Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com CFTC Actions The Energy Industry Should Look For In
More informationComparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation
2013 Morrison & Foerster (UK) LLP All Rights Reserved mofo.com Comparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation Overview Comparison of Dodd Frank Act Title VII
More informationPA TURNPIKE COMMISSION POLICY
POLICY SUBJECT: PA TURNPIKE COMMISSION POLICY This is a statement of official Pennsylvania Turnpike Policy RESPONSIBLE DEPARTMENT: NUMBER: 7.07 APPROVAL DATE: 05-07-2013 EFFECTIVE DATE: 05-07-2013 7.07
More informationDodd-Frank Title VII: Reforms for the Swaps Marketplace
Dodd-Frank Title VII: Reforms for the Swaps Marketplace August 13, 2010 On July 21, 2010, President Obama signed into law the Dodd-Frank Act ( Act ), which institutes sweeping reforms across the financial
More informationImplementation of Australia s G-20 over-the-counter derivatives commitments
15 February 2013 Financial Markets Unit Corporations and Capital Markets Division The Treasury Langton Crescent PARKES ACT 2600 Submitted via: financialmarkets@treasury.gov.au Re: Implementation of Australia
More informationOverview of Final Rules on Recordkeeping and Reporting of Swaps
Overview of Final Rules on Recordkeeping and Reporting of Swaps February 21, 2012 This memorandum discusses the final rules adopted by the Commodity Futures Trading Commission (the CFTC or the Commission
More informationEnd-User Guide to CFTC Implementation of Dodd-Frank Act
Keith M. Sappenfield, II, Encana Marketing (USA) Inc. Terry Coggins, Southern Company NAESB Board of Directors Houston, Texas June 23 rd 2011 Background Illustrative Impacts on Energy End-Users Definitions
More informationTHE DODD-FRANK ACT & DERIVATIVES MARKET
THE DODD-FRANK ACT & DERIVATIVES MARKET By Khader Shaik Author of Managing Derivatives Contracts This presentation can be used as a supplement to Chapter 9 - The Dodd-Frank Act Agenda Introduction Major
More informationISDA 2013 EMIR NFC Representation Protocol: Factors to consider in deciding whether to adhere
2nd April 2013 Practice Group(s): Finance Investment Management ISDA 2013 EMIR NFC Representation Protocol: Factors to consider in deciding whether to adhere By Stephen Moller On 8 March 2013, The International
More informationInterest Rate Risk Management Refresher. April 27, Presented to: Section I. Basics of Interest Rate Hedging?
Interest Rate Risk Management Refresher April 27, 2012 Presented to: Section I Basics of Interest Rate Hedging? What Is An Interest Rate Hedge? Interest rate hedges are contracts between parties designed
More informationO T C D E R I V A T I V E S R E G U L A T I O N : A R E Y O U R E A D Y F O R C E N T R A L C L E A R I N G?
S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L O T C D E R I V A T I V E S R E G U L A T I O N : A R E Y O U R E A D Y F O R C E N T R A L C L E A R I N G? June 5, 2013 Speakers Michael Mykytiw
More informationThe Treasury Report s Recommendations for Derivatives Regulation
Client Alert October 26, 2017 The Treasury Report s Recommendations for Derivatives Regulation In a previous client alert, available here, we provided an overview of the recent report, the second of four,
More informationSafeguarding the Integrity of the Derivatives Markets
Regulation. Redefined. Protecting & Educating Investors Safeguarding the Integrity of the Derivatives Markets Fighting Fraud and Abuse Introduction National Futures Association (NFA) is the self-regulatory
More informationKey Dodd-Frank Regulatory Issues for International Banks: Over-the-Counter Derivatives and the Volcker Rule
Key Dodd-Frank Regulatory Issues for International Banks: Over-the-Counter Derivatives and the Volcker Rule Lisa M. Ledbetter December 7, 2016 1 Presenter Lisa M. Ledbetter Partner, Jones Day Financial
More informationManaging Interest Rate Risk
Managing Interest Rate Risk A Treasury Panel Mike Bontrager: CEO, Chatham Financial Mark Cvrkel: Treasurer & Chief Financial Officer, Susquehanna Bank Bill Murray: Treasurer, US Foodservice Karen Weller:
More informationUS Alternative Investment Management: Dodd-Frank and Foreign Private Advisers
FINANCIAL SERVICES US Alternative Investment Management: Dodd-Frank and Foreign Private Advisers ADVISORY Contents Page Where we are today. 2 Key provisions of the Dodd-Frank act 3 Key provisions of the
More information17 CFR Part 45. Dear Mr. McGonagle:
17 CFR Part 45 February 11, 2014 Mr. Vincent McGonagle Director Division of Market Oversight Commodity Futures Trading Commission Three Lafayette Centre 1155 21st Street, N.W. Washington, DC 20581 Re:
More informationRe: CFTC and SEC Staff Public Roundtable on International Issues relating to Dodd-Frank Title VII
Mr. David A. Stawick Secretary Commodity Futures Trading Commission Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 Ms. Elizabeth Murphy Secretary Securities and Exchange Commission 100
More informationTime-Limited No-Action Relief for Agents from the Post-Allocation Swap Timing Requirement of 45.3(e)(ii)(A) of the Commission s Regulations
U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5000 Facsimile: (202) 418-5521 www.cftc.gov CFTC Letter No. 12-50 No-Action
More informationComparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation
2014 Morrison & Foerster (UK) LLP All Rights Reserved mofo.com Comparison of the Dodd Frank Act Title VII and the European Market Infrastructure Regulation Overview Comparison of Dodd Frank Act Title VII
More informationPublic Finance Client Alert
Public Finance Client Alert July 22, 2010 Regulation for the Short- and Long-Term: How Dodd-Frank Will Affect Municipal Securities The Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank
More informationU.S. COMMODITY FUTURES TRADING COMMISSION
U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5000 Facsimile: (202) 418-5521 www.cftc.gov Division of Market Oversight
More information