06/24/2014 - ISDA Publishes Form of Amendment to Address Uncertainty Regarding Section 2(a)(iii)
The International Swaps and Derivatives Association, Inc. (“ISDA”) has published a form of amendment to the 1992 and 2002 ISDA Master Agreements intended to address continuing uncertainty regarding the condition precedent set forth in Section 2(a)(iii) of both such Master Agreements (“Section 2(a)(iii)”).
04/23/2014 - ISDA Section 2(a)(iii): Problems and Solutions
In recent years, one clause of the ISDA Master Agreement has been the source of a great deal of consternation among derivatives lawyers: the condition precedent set forth in Section 2(a)(iii), which purports to suspend a party’s payment obligations in the event of a continuing default by the other party.
04/04/2014 - CFTC Loosens Requirements for Swaps for Utility Special Entities
On March 21, 2014, the Division of Swap Dealer and Intermediary Oversight (“Division”) of the CFTC issued a no-action relief letter (the “2014 Letter”), to temporarily allow entities to deal in utility operations-related swaps, as defined in the 2014 Letter, without counting such swaps towards the “sub-limit” threshold for swap dealer registration with regard to such swaps.
12/11/2013 - Dodd-Frank Update: Cross-Border Application
The U.S. Commodity Futures Trading Commission has issued interpretive guidance regarding which Dodd-Frank requirements apply to certain non-U.S. swap transactions.
05/15/2013 - Dodd-Frank Update: CFTC ISO/RTO Exemptive Order
On March 28, 2013, the Commodity Futures Trading Commission (“CFTC”) issued a final order exempting specified transactions by certain regional transmission organizations (“RTO”) and independent system operators (“ISO”) from all but the general anti-fraud and anti-manipulation prohibitions of the Commodity Exchange Act (“CEA”) and related CFTC regulations promulgated thereunder (“Exemptive Order”).
05/10/2013 - Dodd-Frank Update: CFTC Inter-Affiliate Swap Clearing Exemption
On April 1, 2013, the U.S. Commodity Futures Trading Commission (“CFTC”) issued a final rule exempting swaps between certain affiliated entities from the clearing requirement under section 2(h)(1)(A) of the Commodity Exchange Act (“CEA”) and CFTC regulations (“Final Rule”).
04/03/2013 - Update on Dodd-Frank Requirements for Swap Guarantees
The Commodities Futures Trading Commission (the “CFTC”), pursuant to its rulemaking authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) , has interpreted guarantees of swap agreements to fall under the definition of a swap...
02/21/2013 - Credit Agreement Guarantees and Similar Agreements May Require Amendments to Remain Dodd-Frank Compliant
Pursuant to new rules and interpretations issued by the U.S. Commodity Futures Trading Commission (the “CFTC”) and the Securities Exchange Commission under the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with related rules, regulations and interpretations, the “Dodd-Frank Act”), a “swap” has been interpreted to include any guarantee of a swap.
12/18/2012 - ISDA Protocol Compliance Deadlines Delayed
End users will be relieved to know that compliance dates for business conduct and documentation rules related to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) have now been delayed until May 1, 2013.
11/30/2012 - ISDA Protocol Compliance Deadlines Loom
On November 20 and 27, 2012, the International Swaps and Derivatives Association, Inc. (“ISDA”) filed two letters with the Commodity Futures Trading Commission (“CFTC”) requesting an extension of compliance dates for certain new business conduct, portfolio reconciliation and swap trading relationship documentation requirements issued by the CFTC pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).
12/05/2011 - CFTC Position Limit Rules Challenged in Lawsuit by ISDA and SIFMA
On Friday, December 2, 2011, the International Swaps and Derivatives Association ("ISDA") and the Securities Industry and Financial Markets Association ("SIFMA") jointly filed a lawsuit
in the U.S. District Court for the District of Columbia against the Commodity Futures Trading Commission ("CFTC") and a petition for review
in the U.S. Court of Appeals for the District of Columbia Circuit challenging the final rules establishing speculative position limits on certain physical commodity futures and option contracts (the "Position Limit Rules"), which were adopted by the CFTC at its October 18, 2011 meeting.
11/16/2011 - Update on CFTC Rulemaking: CFTC Issues Final Rules on Position Limits for Commodity Futures and Swaps
At its open meeting on October 18, 2011, the Commodity Futures Trading Commission adopted final rules to establish speculative position limits for 28 physical commodity futures and options contracts and futures, options, swap, or swaption contracts that are economically equivalent to such Core Referenced Futures Contracts.
10/17/2011 - Update on CFTC Dodd-Frank Rulemaking: CFTC Outlines Rulemaking and Implementation Timelines and Announces Delays in Large Trader Reporting Requirements
This alert provides updates on CFTC rulemaking and implementation timelines and delays in large trader reporting requirements.
09/28/2011 - Update on CFTC Rulemaking Regarding Agricultural Swaps and Commodity Options
The Commodity Futures Trading Commission (“CFTC
”) has finalized two rules to authorize swaps (other than options) in agricultural commodities which will (i) correct existing inconsistencies, bring the regulation of agricultural swaps in line with the regulation of all other swaps under the CFTC’s jurisdiction, and clarify that agricultural swaps may be listed or traded on swap execution facilities or designated contract markets, and (ii) provide a definition for regulatory purposes of the term “Agricultural Commodity.”