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January 03, 2012
The ISDA Master Agreement - Part 1: Architecture, Risks & Compliance - by GuyLaine Charles
While the prospect of mandatory clearing is looming market participants continue to enter into over-the-counter derivative trades bilaterally under an ISDA Master Agreement. This Part I of the article discusses the origins of the ISDA Master Agreements, the architecture of the standardized documentation (including that it forms a single agreement), and the risk and compliance considerations that should be taken into account prior to entering into an ISDA Master Agreement and also during the course of a trading relationship documented under such agreement.
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November 22, 2011
Entering Uncharted Waters: MF Global liquidation presents unprecedented test of U.S. insolvency regime for dual registrants - Teigland-Hunt LLP Client Alert
§ MF Global represents first significant liquidation of a brokerage firm jointly registered as a broker-dealer with the SEC and a commodity broker with the CFTC
§ Liquidation of MF Global will require the unprecedented application of two distinct bankruptcy and customer asset protection regimes that lack harmonization
§ Over 40 of the 50 largest commodity brokers are dually registered as broker-dealers
Even in these early days, the collapse of MF Global is proving significant for a number of reasons. In addition to being one of the ten largest bankruptcies in U.S. history, MF Global’s collapse potentially involves missing customer assets amounting to hundreds of millions of dollars. In the long run, however, one of the larger distinctions may prove to be that the liquidation of MF Global will require the unprecedented application of two vastly different bankruptcy and customer asset protection regimes to a sizeable brokerage firm.
See the T-H Client Alert attached for further analysis of this important development.
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June 17, 2011
Ready, Set, Clear: FIA and ISDA Publish Standardized Agreement Addressing Execution Issues for Cleared Swaps - Teigland-Hunt LLP Client Alert
- "FIA-ISDA Cleared Derivatives Execution Agreement" now published
- Standardized swap addendum for clearing agreements to follow
In anticipation of growing demand for swap clearing with the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Futures Industry Association (FIA) and the International Swaps and Derivatives Association, Inc. (ISDA) today published their first standardized form of agreement covering cleared swaps. The “Cleared Derivatives Execution Agreement” will allow parties entering into swaps that are intended to be cleared to address certain issues that may arise in connection with the execution of such transactions. In the near future FIA also will be publishing a standardized form of addendum for futures clearing agreements between customers and their futures commission merchants (FCMs) that addresses terms related to the clearing of swaps.
See the TH Client Alert attached for more details about both of these important documentation initiatives.
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November 04, 2010
New Recordkeeping Requirements for Swaps - Teigland-Hunt LLP Client Alert
The Commodity Futures Trading Commission (“CFTC”) recently issued an interim final rule (the “Rule”) requiring the reporting of swap transactions that were open as of July 21, 2010, the date of enactment of the Dodd‐Frank Act (“Pre‐Enactment Unexpired Swaps”). Comments onthe Rule will be accepted by the CFTC until November 15, 2010.
Because the rules for swap data repositories (“SDRs”) and reporting have not yet been issued, counterparties to Pre‐Enactment Unexpired Swaps currently are obligated only to keep records with respect to Pre‐Enactment Unexpired Swaps. This recordkeeping requirement applies to all counterparties to Pre‐Enactment Unexpired Swaps, whether or not they will eventually be the reporting party.
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August 08, 2010
Over-the-Counter Derivatives and The Dodd-Frank Wall Street Reform and Consumer Protection Act - by GuyLaine Charles
