Swaps and Derivatives

A Note on the application of the US securities laws to security-based swaps.

This Note describes the primary differences between the two standard master agreements that the International Swaps and Derivatives Association (ISDA) has published for parties to use in documenting over-the-counter (OTC) derivatives transactions, the 2002 ISDA Master Agreement and the 1992 Multicurrency - Cross Border Master Agreement.

This Note provides guidance to commercial end users and funds negotiating any type of bilateral margining or collateral arrangement with a bank or broker-dealer, and discusses a number of issues of particular importance in negotiating collateral arrangements with prime brokers and swap dealer counterparties. Note that the title of this resource has been changed from Negotiating Counteprarty Collateral Arrangements.

This Note describes the various ways different end-users use swaps and derivatives products in their commercial operations.

A simple and clear guide to compliance with final Dodd-Frank swap data reporting rules.

This Note provides a road map for swap counterparties looking to modify new and existing swap documentation to reflect and comply with final and soon-to-be final Dodd-Frank swaps rules, including external business conduct (EBC) rules for swap dealers and MSPs, as well as Dodd-Frank margin collateral rules.

EMIR (the Regulation on OTC derivative transactions, central counterparties and trade repositories) (Regulation 648/2012) imposes a number of requirements on counterparties to derivative contracts, central counterparties (CCPs) and trade repositories. This note provides an overview of the EMIR requirements and links to other Practice notes that address aspects of the Regulation in more detail.

EMIR (the Regulation on OTC derivative transactions, central counterparties and trade repositories) (Regulation 648/2012) imposes trade reporting requirements on parties to derivative transactions. Counterparties must report trade data to registered trade repositories.The rules will affect all types of counterparties to trades in all classes of derivatives, irrespective of whether the parties are regulated or unregulated, and irrespective of whether the trades are executed on exchange or over-the-counter (OTC). This note explains the trade reporting requirements and the procedures involved.

A Practice Note discussing Title VII of the Dodd-Frank Act's expansion of the definition of "commodity pool" in the Commodity Exchange Act (CEA) to include vehicles such as funds and securitization vehicles that use swaps to provide investment exposure. These vehicles now fall within the definition, subjecting their operators and managers to registration and a framework of regulation as commodity pool operators (CPOs) and commodity trading advisors (CTAs).

This Note discusses important final joint CFTC and SEC rulemaking under the Dodd-Frank Act establishing definitions of key Title VII terms "swap dealer," "security-based swap dealer," "major swap participant" (MSP) and "major security-based swap participant" (referred to collectively as "registered entities"). These rules establish thresholds that require certain parties to register as registered entities. Registered entities are subject to enhanced regulatory oversight under the Dodd-Frank Act because they engage in significant levels of derivatives activity.

This Note discusses the mechanics of the clearing process for swaps and derivatives in light of global regulatory initiatives such as Title VII of the Dodd-Frank Act that require many over-the-counter (OTC) derivatives to be traded on exchanges and cleared through clearinghouses. The Note also outlines issues and consequences of the new global swap clearing environment for end users and funds.

This practice note is one of two notes summarising the European Commission's consultation proposals to amend the requirements of the Markets in Financial Instruments Directive (2004/39/EC) and its implementing legislation, which were published in October 2010 following the Commission's review of the effectiveness of the Directive. This note focuses specifically on the proposals that will impact on market structure and the way those markets, and those operating within them, function. It includes proposals to enhance requirements relating to the disclosure of trade transparency data, transaction reporting, the trading of derivatives on organised venues, oversight of derivatives trading and commodity derivative markets. This note does not comment on the Commission's legislative proposals to amend MiFID, which were published in October 2011. For details of the legislative proposals, see Practice note, Hot topics: MiFID II.

This Note provides a complete summary of all applicable proposed and final Dodd-Frank swap data reporting and recordkeeping rules, including details on the obligations of swap dealers (SDs) and major swap participants (MSPs) under the final rules. The Note includes details on applicable compliance dates and a guide to determining which party is the reporting party to a swap. For a comprehensive guide to compliance with all final applicable Dodd-Frank swap data reporting rules, see Practice Note, Dodd-Frank Quick and Easy: Swap Data Reporting.

This Practice Note details final Dodd-Frank rules issued by the CFTC for swap dealers (SDs) and major swap participants (MSPs) covering their Title VII compliance activities, including the appointment of a Title VII chief compliance officer (CCO). This Note also discusses other internal risk-management controls and procedures for SDs and MSPs, as well as futures commission merchants (FCMs) and introducing brokers (IBs).

This Note details final and proposed rules under the Dodd-Frank Act covering margin collateral matters for both cleared and uncleared swaps.

This Note examines the key aspects of Section 716 of the Dodd-Frank Act, known as the Pushout Rule or the Lincoln Rule, and its anticipated impact on the OTC derivatives market. The Note also discusses how derivatives create relationships that make financial institutions too big to fail, and details the mechanics behind the financial crisis, including the role of subprime MBS, CDOs and CDS.

This Note summarizes and compares the comprehensive regulatory framework for over-the-counter (OTC) derivatives in the US under the Dodd-Frank Act and in the EU under the European Market Infrastructure Regulation (EMIR) and review of the Markets in Financial Instruments Directive (MiFID II), with a particular focus on implications for end users of derivatives.

A sample form of Notice of Default and Early Termination under an ISDA Master Agreement. This Standard Document has integrated notes with important explanations as well as drafting tips.

This Standard Clause may be used as a guideline for collateral eligibility tables to be included in credit support documentation governing margin collateral arrangements for bilateral transactions, including swaps and derivatives, securities lending, repos, prime brokerage and any other transaction for which a bilateral margin/collateral arrangement may be required. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.

A calendar of important Dodd-Frank swap dates.

In this checklist, Karen Anderson, Partner, and Sarah Thomas, Senior Associate, in Herbert Smith Freehills' Financial Services Regulatory Group, and Patricia Horton, a professional support lawyer in that group, consider the Supreme Court's February 2012 judgment on the administrators' client money application in the matter of Lehman Brothers International (Europe) (LBIE): Re Lehman Brothers International (Europe) (in administration) [2012] UKSC 6. The judgment has a number of implications for firms that hold client money, as well as for firms that hold money with banks and other firms as clients themselves. For a summary and analysis of the key points of the judgment and its implications, see Article, Lehman client money judgment: Supreme Court upholds Court of Appeal decision.

This Article analyzes the new market risk capital rule for large banking organizations.  It discusses the scope and applicability of the new rule, including what positions are covered and how they are treated for regulatory capital purposes.  Further potential changes to the market risk capital rules are also discussed.

In this article, based on a client briefing, the Derivatives Group at Clifford Chance look at how market standard derivatives documentation may (or may not) deal with the possibility of a Eurozone member departing from the currency union.

A detailed discussion of the Lehman Bankruptcy Court's Swedbank decision, in which it held that the safe harbors of the Bankruptcy Code do not override the Code's mutuality requirement for setoff.  The Article also discusses the Delaware Bankruptcy Court's decision in In re Semcrude, which, when read together with Swedbank, could be interpreted to proscribe triangular setoff under agreements safe harbored under the Bankruptcy Code in the bankruptcy context. The Article also discusses related cases In re England Motor Co. and In re Garden Ridge Corp.

The European Commission's proposal for a new regulation on OTC derivatives, published on 15 September 2010, mirrors the Dodd-Frank Act. This article examines current OTC derivatives clearing, documentation for CCP clearing models, key legal and operational issues with moving OTC trades to a central clearing platform and the Commission's proposals for OTC derivatives clearing and the equivalent proposals under the Dodd-Frank Act. This article is part of the PLC multi-jurisdictional guide to Capital Markets. For a full list of contents visit www.practicallaw.com/capitalmarketshandbook.

Michael Sackheim, Elizabeth Schubert and Antony Bryceson of Sidley Austin LLP explain how the recently enacted Dodd-Frank Act and the European Commission's proposed regulation of OTC derivatives will impact end-users.

This Article considers the shortcomings in the prime brokerage model revealed by the collapse of Lehman Brothers, and examines the contractual issues highlighted by the fallout and the subsequent market response.

This Article is part of a series on the causes and impact of the financial crisis and gives an overview of the impact of the financial crisis on capital markets.

This Article discusses the issues that a party must consider when a derivatives dealer counterparty becomes insolvent including termination of a master agreement, closed out netting of underlying trades, and collateral. Click here to view the full text.

This Article discusses the September 22, 2008 Circular issued by the New York State Department of Insurance proposing to regulate the sale of credit default swaps by financial guaranty insurance companies. Included are restrictions on insuring collateralized debt obligations. Click here to view the full text.

FIA and ISDA published the FIA-ISDA Cleared Derivatives Addendum, a template for futures commission merchants (FCMs) and their customers to use in connection with cleared over-the-counter (OTC) swaps. This document was the subject of controversy, as it attempted to set market parameters for swap clearing, and its use was invalidated by subsequent CFTC rules.

The CFTC issued no-action guidance allowing banking institutions that have less than $10 billion in assets to take advantage of the end-user exception to the mandatory clearing requirement without prior board approval until July 10, 2013.

Regulators have granted several major global financial institutions a two year transition period to comply with the swaps Pushout Rule under Section 716 of the Dodd-Frank Act.

The CFTC issued a no-action letter exempting from mandatory swap clearing requirements swaps entered into by financial entities (known as "treasury affiliates") that would otherwise be subject to clearing but need not be cleared because the financial entity is entering into the swap on behalf of a non-financial affiliate hedging commercial risk.

In May 2013, ISDA published a reporting protocol and a conduct allocation protocol, as well as safe harbor letters under the Dodd-Frank documentation initiative. It also issued an announcement relating to the actions of its Americas Credit Derivatives Determinations Committee.

The June 10, 2013 deadline for mandatory buy-side clearing of many CDS and interest rate swaps under Title VII of the Dodd-Frank Act is approaching. Category II Entities including many hedge funds, must have their swap clearing infrastructure operational by this time.

ISDA released a protocol to assist swap dealers (SDs) in allocating Dodd-Frank external business conduct (EBC) responsibilities in prime brokerage transactions between SDs that are prime brokers (PBs) and executing dealers (EDs) to comply with the conditions of CFTC No-action Letter 13-11, permitting allocation of EBC responsibilities in prime brokerage transactions between PBs and EDs.

The CFTC issued further no-action relief for swap dealers (SDs) and major swap participants (MSPs) entering into certain FX transactions with non-SD/non-MSP counterparties from the obligation under CFTC Regulation 23.431 to disclose to their counterparty a pre-trade mid-market mark, as required under final Dodd-Frank external business conduct standards (EBCS) for SDs and MSPs.

On April 30, 2013, the CFTC issued no-action relief for swap dealers (SDs) from certain final Dodd-Frank external business conduct standards (EBCS) when entering into swaps and certain foreign exchange (FX) transactions in a prime brokerage capacity.

In April 2013, ISDA published standard documents for equity derivatives and interest rate swaps as well as an announcement relating to the actions of its Americas Credit Derivatives Determinations Committee. It also published documents under the Dodd-Frank documentation initiative and standard terms relating to regulatory requirements of the US Commodity Futures Trading Commission. 

ISDA has published a set of provisions that may be incorporated by reference into loan documents or other transaction documents to address Dodd-Frank rules requiring swap guarantors to be eligible contract participants (ECPs) under the Commodity Exchange Act (CEA).

The International Swaps and Derivatives Association (ISDA) has released draft arbitration clauses to its members for consultation.

The CFTC issued no-action relief for operators of securitization vehicles that were required to register as commodity pool operators (CPOs) with the CFTC by March 31, 2013.

The CFTC has issued final rules under the Dodd-Frank Act regarding associated persons (APs) of swap dealers (SDs), major swap participants (MSPs) and other CFTC registrants.

The CFTC has further delayed, until June 30, 2013, the compliance date for certain Dodd-Frank swap data recordkeeping requirements for SDs and MSPs, which were scheduled to take effect March 31, 2013.

ISDA has selected new deteminations committee (DC) members, which make important determinaitons for the credit default swaps (CDS) market, including when a credit event has occurred with respect to particular entity.

In March 2013, ISDA published documents for credit derivatives and FX and currency option transactions. It also published protocols relating to Dodd-Frank and EMIR, guidance on the discontinuation of certain LIBOR rates and announcements by its EMEA Determinations Committee.

On 26 March 2013, the International Swaps and Derivatives Association (ISDA) published a guidance note and amendment letter in relation to the discontinuation of certain currencies and maturities of LIBOR.

The US Court of Appeals for the District of Columbia held that the CFTC has exclusive authority to regulate natural gas futures contracts even if those contracts affect the purchase and sale of natural gas, which are within the purview of the Federal Energy Regulatory Commission. 

Bipartisan legislation has been introduced in both houses of congress that would exempt certain swaps from application of the Dodd-Frank Act's pushout rule, which prohibits federally insured depository institutions from swap dealing.

In February 2013, ISDA issued two announcements relating to the actions of its EMEA Credit Derivatives Determinations Committee.

ISDA has released a new set of Dodd-Frank Protocol documents that address requirements under the Dodd-Frank internal business conduct (IBC) rules for swap dealers and major swap participants.

The CFTC held a recent roundtable on the migration of market participants away from swaps and toward futures in order to hedge risk while avoiding burdensome regulations and regulatory uncertainty in the swaps market.

The US Department of Labor (DOL) has issued Advisory Opinion 2013-01A (AO), stating that a clearing member that exercises account liquidation rights following default by a pension plan under a cleared swap is not a plan fiduciary but is a party in interest with respect to the plan. The AO also addresses whether certain transactions between a pension plan and the clearing member in connection with cleared swap transactions are prohibited by ERISA.  

The US District Court for the Southern District of New York issued an opinion and order in Bank of New York Mellon Trust Company, National Association v. Solstice ABS CBO II, Ltd., et al. determining the proper early termination payment under a swap entered into in connection with a collateralized debt obligation (CDO) transaction.

In January 2013, ISDA published a disclosure annex for credit derivative transactions and announced that an auction would be held for European loan-only CDS transactions referencing certain facilities entered into by Mediannuaire.

The IRS and Treasury Department issued final Treasury regulations addressing withholding and information reporting requirements under the Foreign Account Tax Compliance Act (FATCA).

A calendar of important upcoming Dodd-Frank swap dates.

On December 21, 2012, the CFTC released language to be used in legal opinions issued by counsel in compliance with the no-action relief issued by the CFTC from the obligation to report legal entity identifiers (LEIs) and certain other counterparty identifying information, which may be in contravention of non-US privacy laws.

The CFTC issued a final exemptive order and further proposed guidance providing temporary relief from certain cross-border, or extraterritorial, applications of the swaps provisions of the Commodity Exchange Act (CEA) as added under Title VII of the Dodd-Frank Act.

In December 2012, ISDA published a Settlement Matrix for Early Termination for Cross-Currency Swaps and issued an announcement relating to the actions of its Americas Credit Derivatives Determinations Committee.

On December 17, 2012, the CFTC granted temporary no-action relief from certain swap data reporting obligations under Part 43 (real-time reporting) and Part 45 (SDR reporting) of the CFTC's Regulations for certain uncleared swap transactions of prime brokers.

On December 12, 2012, the US District Court for the District of Columbia upheld a CFTC rule issued under the Dodd-Frank Act that requires certain funds that participate in the futures and swaps markets to register as commodity pool operators (CPOs). 

The SEC and regulators from various global jurisdictions issued a joint statement on operating principles and areas of further interest in establishing a comprehensive set of regulations for the cross-border OTC derivatives market.

On December 5, 2012, the CFTC's Division of Market Oversight issued temporary no-action relief to swap dealers delaying swap data reporting requirements for equity, foreign exchange and commodity swaps due to the effects of Hurricane Sandy.

In November 2012, ISDA published documents under the Dodd-Frank documentation initiative and issued two announcements relating to the actions of its determinations committees.

The CFTC issued a no-action letter clarifying that swap data reporting requirements do not apply until the earlier of the date on which a swap dealer (SD) must register with the CFTC as an SD, or April 10, 2013. The CFTC also provided a grace period for certain historical swap data reporting obligations.

The OCC extended the deadline for complying with changes to bank lending limits that include derivatives and other transactions. 

The Loan Market Association (LMA) has published revised versions of some of its secondary debt trading documents in the light of the US Dodd-Frank Act.

On October 29, 2012, ISDA released guidance for parties to over-the-counter derivatives that are affected by the closing of US exchanges and bond markets on October 29-30, 2012 due to Hurricane Sandy.

The SEC proposed rules on capital, margin and segregation requirements for security-based swap dealers (SBSDs) and major security-based swap participants (MSBSPs), as required under Title VII of the Dodd-Frank Act.

On October 12, 2012, the CFTC issued several interpretive and no-action letters relating to threshold calculations for swap dealers (SDs), major swap participants (MSPs) and commodity pool operators (CPOs), as well as other matters relating to SDs, MSPs and CPOs, as the effective date for many regulatory obligations under Title VII of the Dodd-Frank Act arrived.

Certain final Dodd-Frank swaps rules become effective on October 12, 2012, the date that is 60 days after final rules on the definition of the term "swap" were published in the Federal Register.

The US District Court for the District of Columbia issued a ruling vacating the CFTC's final Dodd-Frank commodity position limits rules.

The CFTC provisionally approved an application by DTCC Data Repository, LLC to establish and operate a multi-asset class swap data repository (SDR) in the US. Also, the CFTC plans to delay the initial compliance date for swap data reporting to January 1, 2013.

The Federal Reserve Board, FDIC and other regulators reopened until November 26, 2012 the comment period for a Dodd-Frank proposed rule on margin requirements relating to many uncleared swap trades.

The CFTC published final rules in the Federal Register governing acknowledgements, transaction confirmations, recordkeeping, portfolio reconciliation, portfolio compression and trading relationship documentation for swap dealers and major swap participants.

An update on a change to an effective date under temporary regulations addressing the treatment of dividend equivalent payments.

The CFTC extended the date for compliance with certain external business conduct standards for swap dealers (SDs) and major swap participants (MSPs) in their dealings with their customers with which they enter into swaps.

The CFTC's Division of Market Oversight issued a no-action letter allowing market participants to temporarily rely on the recently issued exemption from Dodd-Frank swaps rules for physically delivered commodity option contracts without complying with all of its specified provisions.

The CFTC issued a proposed rule that would exempt swaps between certain affiliated entities (inter-affiliate swaps) from Dodd-Frank's swap clearing requirement.

ISDA launched its Dodd-Frank Protocol to facilitate amendment of ISDA documents in order to comply with swaps regulations under Title VII of the Dodd-Frank Act.

The CFTC issued proposed rules under the Dodd-Frank Act that would require certain classes of credit default swaps (CDS) and interest rate swaps to be cleared by derivatives clearing organizations (DCOs).

In July 2012, ISDA published a supplement to the 2006 ISDA definitions and an illegality/force majeure protocol.

CFTC proposed new rules and related forms to enhance its identification of futures and swap market participants.

The Basel Committee on Banking Supervision (BCBS) has issued the final version of its interim Basel III rules on the capitalisation of bank exposures to central counterparties (CCPs), ahead of further work planned in 2013.

The CFTC issued final rules detailing the specifics of the end-user exception to the mandatory swap clearing requirement of Title VII of the Dodd-Frank Act.

The CFTC has given notice that would delay compliance by US swap dealers and major swap participants (MSPs) with certain Dodd-Frank swaps regulations until January 1, 2013.

The CFTC and the SEC adopted joint final rules defining certain key terms that determine which transactions are subject to swaps regulation under Title VII of the Dodd-Frank Act. The issuance of these final rules triggers compliance obligations under many other final Dodd-Frank swaps rules.

The CFTC has issued proposed interpretive guidance on the extraterritorial application of the swaps provisions of Title VII of the Dodd-Frank Act.

The CFTC issued a notice of proposed rulemaking further clarifying proposed Dodd-Frank rules on block trades. Block trades are large notional swaps for which special provisions are included in the CFTC's real-time swap data reporting and related rules.

The International Swaps and Derivatives Association (ISDA) Law Reform Committee held a meeting in Singapore last week to discuss the use of arbitration for derivative disputes.

The CFTC proposed rules under the Dodd-Frank Act regarding associated persons (APs) of swap dealers (SDs), major swap participants (MSPs) and other CFTC registrants. APs are officers, employees and agents who solicit or accept swaps on behalf of SDs or MSPs.

ISDA announced that it is partnering with Markit to develop technology that will allow counterparties to amend their over-the-counter (OTC) derivatives documentation.

ISDA released a paper meant to provide the swaps industry with guidance to be used for unique swap identifier (USI) generation and use. USIs will be used in connection with Dodd-Frank swap data reporting rules.

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a final report on international standards for derivatives market intermediary (DMI) regulation.

The CFTC issued final rules establishing data reporting and recordkeeping requirements for pre-enactment and transition swaps, referred to collectively as historical swaps, under the Dodd-Frank Act. These include all currently outstanding swaps and swaps currently being entered into.

The CFTC issued proposed rules that would modify rules on the aggregation of trading positions in physical commodities and related contracts for purposes of complying with final Dodd-Frank speculative commodity position limits rules.

The SEC issued a no-action letter relating to certain technicalities of the swaps clearing process and Section 716 of the Dodd-Frank Act, known as the Pushout Rule.

The International Swaps and Derivatives Association (ISDA) published a paper on the three-year history of the ISDA Credit Derivatives Determinations Committees.

The US Bankruptcy Court for the Southern District of New York held in an adversary proceeding relating to the Lehman Brothers bankruptcy cases that the safe harbor contained in section 546(e) of the Bankruptcy Code prevents the Lehman bankruptcy estate from avoiding prepetition collateral transfers made to JPMorgan Chase under various trading contracts, lending arrangements and as Lehman's clearing bank.

A number of international trade associations have sent a joint letter to Tim Geithner, US Treasury Secretary and Michel Barnier, European Commissioner for Internal Market and Services, raising issues arising from extra-territorial legislation.

The CFTC adopted final rules subjecting commodity options to Dodd-Frank swaps rules applicable to other non-security-based swaps, but issued an interim final rule exempting options on many physically settled  commodities used for commercial business purposes.

The SEC issued final rules exempting security-based swap transactions cleared through qualifying security-based swap clearinghouses (clearing agencies) from US securities laws.

Regulators clarified the effective date for Section 716 of the Dodd-Frank Act, known as the Pushout Rule or Lincoln Rule.

The European Parliament has published a press release announcing it has adopted the European Market Infrastructure Regulation (EMIR) (also known as the Regulation on over-the-counter (OTC) derivative transactions, central counterparties (CCPs) and trade repositories). (Free access.)

The CFTC's Division of Enforcement has created specialized enforcement squads for swap regulations and manipulative and disruptive trading practices.

ISDA's EMEA (European) Determinations Committee unanimously found that Greece had triggered a restructuring credit event under credit default swaps (CDS) that identify the Hellenic Republic (Greece) as the applicable reference entity.

The Financial Stability Board has published an update on its legal entity identifier (LEI) expert group's work on developing a global framework for the LEI.  This includes early guidance on two technical features of the LEI.

In February 2012, ISDA published standard documents for credit derivatives, interest rate and currency derivatives, and FX and currency option transactions. It also issued two announcements relating to the actions of its determinations committees.

The Council of the European Union has adopted the proposed regulation on short selling and certain aspects of credit default swaps.

A new group of investors in certain synthetic CDOs issued by affiliates of Lehman Brothers filed suit in the US Bankruptcy Court for the Southern District of New York seeking to enforce, on grounds of judicial comity, conditional payment provisions that were ruled unenforceable by the same court in 2010.

The European Parliament, Council of the European Union and European Commission have reached agreement on the proposed European Market Infrastructure Regulation (EMIR).

In January 2012, ISDA published Supplement number 29 to the 2006 ISDA Definitions, as well as an announcement by its Americas Credit Derivatives Determinations Committee.

An update on recently issued temporary and proposed regulations addressing the treatment of dividend equivalent payments.

The CFTC adopted final rules under Title VII of the Dodd-Frank Act imposing so-called "external" business conduct standards on swap dealers and major swap participants (MSPs) in dealings with their swap counterparties.

The CFTC proposed its version of Dodd-Frank rules prohibiting and restricting proprietary trading activities by banks, commonly known as the Volcker Rule.

The CFTC issued final rules under the Dodd-Frank Act designed to protect margin collateral relating to the cleared swaps of customers of futures commission merchants (FCMs).

ISDA announced the membership and charter of the Industry Clearing Committee (ICC), which consists of a broad cross-section of OTC derivatives industry market participants.

The CFTC issued a final order amending the effective date of many Dodd-Frank regulations covering non-security-based swaps. The final order extends the exemption from compliance with these rules to July 16, 2012, or earlier if made possible by the completion of related rulemaking.

The CFTC adopted final rules on swap data reporting and recordkeeping requirements for registered entities and parties to all non-security-based swaps.

The CFTC issued final rules implementing changes required under Dodd-Frank to CFTC regulations that cover the investment by derivatives clearing organizations (DCOs) and futures commission merchants (FCMs) of customer funds collateralizing non-security-based swaps.

The CFTC approved final rules on registration of foreign boards of trade (FBOTs) under the Dodd-Frank Act.

The European Securities and Markets Authority has issued an investor warning about forex trading.

ISDA has published proposed language to address the effects of the Foreign Account Tax Compliance Act (FATCA) withholding tax on derivatives transactions.

The Bank for International Settlements has published a report by its Committee on the Global Financial System on the macrofinancial implications of alternative configurations for access to central counterparties in over-the-counter derivatives markets.

On November 3, 2011, the International Swaps and Derivatives Association (ISDA) announced its plans for a new Standard Credit Support Annex (SCSA).

During October 2011, ISDA published standard documents for deliverable CNY (Chinese Yuan Renminbi, the currency of China) FX transactions, currency option transactions and swap transactions where a CNY Disruption Event renders CNY non-deliverable.

On October 18, 2011, the CFTC approved final rules under the Dodd-Frank Act setting position limits for physical commodity futures contracts and economically equivalent futures, options and swaps.

The European Commission has published legislative proposals to amend the Markets in Financial Instruments Directive (2004/39/EC). The proposals (referred to as MiFID II) consist of a Directive and a Regulation. They are intended to make financial markets more efficient, resilient and transparent, strengthen investor protection, increase the supervisory powers of regulators and provide clear operating rules for all trading activities. (Free access)

On October 4, 2011, the US Bankruptcy Court for the Southern District of New York issued an opinion in the Lehman Brothers bankruptcy cases holding that cross-affiliate netting provisions are unenforceable in bankruptcy to the extent they cover non-mutual debts.

On October 11, 2011, the federal banking agencies issued for public comments proposed rules implementing the Volcker Rule under Section 619 of the Dodd-Frank Act.

During September 2011, ISDA published standard documents relating to credit derivatives and interest rate and currency derivatives.

On September 16, 2011, the IRS proposed rules concerning the classification of credit default swaps (CDS) and other derivatives for tax purposes.

On September 8, 2011, the CFTC proposed a schedule for compliance with Dodd-Frank swap trading documentation requirements for entities classified as swap dealers and major swap participants (MSPs) under the Dodd-Frank Act. The CFTC also proposed a compliance schedule for Dodd-Frank margin collateral requirements for uncleared swaps entered into by certain swap dealers and MSPs.

In August 2011, ISDA published an amendment to Annex A to the 1998 Foreign Exchange and Currency Option Definitions. It also published an announcement by its EMEA Credit Derivatives Determinations Committee.

An update on the CFTC's final rules regarding registration and regulation of swap data repositories (SDRs) under Title VII of the Dodd-Frank Act.

An update on the UK Supreme Court confirming the enforceability of flip clauses under UK law in the Belmont Park (Perpetual) decision.

An update on certain core provisions of Title VII of the Dodd-Frank Act, covering swaps and derivatives, which became effective on July 16, 2011, the one year anniversary of Dodd-Frank enactment, as well as a final CFTC order providing exemptive relief from compliance with most Title VII non-security-based swaps provisions, the latest in a series of releases by regulators on Title VII delays.

An update on the CFTC's final rules on the review of non-security-based swaps for mandatory clearing under Title VII of the Dodd-Frank Act.

An update on the July 18, 2011 opinion of the US Court of Appeals for the Second Circuit in CSX Corporation v. The Children's Investment Fund Management (UK) LLP.

An update on the publication of ISDA's 2011 Equity Derivatives Definitions.

An update on the final rule adopted by the CFTC defining "agricultural commodity" for Dodd-Frank purposes and the regulations requiring large-trader reporting for physical commodity swaps.

In June 2011, ISDA published documents relating to cleared swaps, cross currency FX transactions and interest rate and currency derivatives. It also published an announcement by its EMEA Credit Derivatives Determinations Committee.

An update on the new FIA-ISDA Cleared Derivatives Execution Agreement, an optional agreement governing pre-clearing matters for cleared over-the-counter (OTC) derivatives transactions, published by the Futures Industry Association and ISDA.

An update on new rules proposed by the SEC that would exempt certain clearing agency security-based swap (SBS) transactions from most of the requirements of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Trust Indenture Act of 1939, including registration requirements, subject to certain conditions. The proposed exemptions are designed to address unintended consequences created by Dodd-Frank rules that would make SBS clearing impracticable.

An update on the controversy surrounding the timetable for Dodd-Frank implementation and the extension by federal regulators of the public comment period for proposed rules on securitization credit risk retention to August 1, 2011. This is the latest in a series of Dodd-Frank rulemaking delays that have come primarily in the area of OTC derivatives.

An update on a Lehman Bankruptcy Court decision denying defendant Ballyrock's motion to dismiss Lehman's claims that a provision in a CDO-related swap agreement operates as a prohibited ipso facto flip clause.

In April 2011, ISDA published standard documents relating to credit derivatives, Vietnamese translations of standard documents concerning FX derivatives and interest rate and currency derivatives, and a French translation of the ISDA Master Agreement.

On 29 April 2011, the European Commission announced that it has opened two separate investigations into suspected breaches of Article 101 and/or Article 102 of the TFEU in the Credit Default Swaps market.

An update on the CFTC's extension of the public comment periods for proposed Dodd-Frank swaps and derivatives rules.

An update on the proposed rules issued by the Commodity Futures Trading Commission (CFTC) that would establish capital requirements for nonbank swap dealers and major swap participants (MSPs) under the Dodd-Frank Act.

An update on new joint proposed rules from the CFTC and SEC further defining key Dodd-Frank swap terms such as "swap," "security-based swap" and "security-based swap agreement" under Title VII of the Dodd-Frank Act.

ISDA has published a Master FX Novation and Cancellation Protocol which can be used to amend (among other documents) the 1992 and 2002 ISDA Master Agreements.

An update on a notice of proposed rulemaking by the Federal Reserve Board (FRB) establishing risk-management standards and requirements for advance notice of material changes to the rules, procedures or operations of certain financial market utilities (FMUs) designated as systemically important, as required by the Dodd-Frank Act.

An update on the SEC's proposed readoption of portions of Rules 13d-3 and 16a-1 under the Securities Exchange Act of 1934, as amended (Exchange Act). The proposed readoption is intended to ensure that current beneficial ownership reporting requirements for security-based swaps will not be changed by Section 13(o) of the Exchange Act, which was added by the Dodd-Frank Act.

An update on the SEC's publication of standards governing the operation and governance of securities and security-based swap clearing agencies.

ISDA published standard documents in February 2011 relating to credit derivatives and equity derivatives.

An update on the CFTC's proposed amendments to its regulations governing commodity pool operators (CPOs) and commodity trading advisors (CTAs) designed to subject them to Commodity Exchange Act (CEA) swap rules created by the Dodd-Frank Act.

An update on the CFTC's proposed rules and interpretive order under the Dodd-Frank Act covering registration of intermediaries; processing, transferring and clearing of customer positions; commodity trading advisors and commodity pool operators; and disruptive practices.

ISDA published various standard documents of general application in January 2011.

An update on the CFTC's proposed rule requiring the inclusion of certain provisions designed to accommodate the FDIC's orderly liquidation authority in the swap trading documents of swap dealers and major swap participants.

An update on the CFTC's proposed rules under the Dodd-Frank Act on position limits for physical commodity futures contracts and economically equivalent swaps.

An update on the CFTC's proposed rules under the Dodd-Frank Act on documentation of swaps trading relationships for swap dealers and major swap participants.

ISDA published various standard documents of general application in December 2010.

An update on CFTC-proposed risk management and operational rules for derivatives clearing organizations (DCOs) under the Dodd-Frank Act.

An update on a proposed rule by the SEC on clearinghouse approval of security-based swaps for mandatory clearing and certain reporting requirements for systemically important security-based swap clearinghouses under the Dodd-Frank Act.

An update on the exemption from the Dodd-Frank Act's mandatory swap-clearing requirement proposed by the SEC for end users using security-based swaps to hedge or mitigate commercial risk.

An update on a new rule proposed by the CFTC under the Dodd-Frank Act outlining requirements for conflict-of-interest resolution, governance fitness and governing-board composition for derivatives clearing organizations (DCOs), designated contract markets (DCMs) and swap execution facilities (SEFs).

An update on new rules proposed by the CFTC under the Dodd-Frank Act imposing on swap dealers and major swap participants standards of conduct for their dealings with swap counterparties.

ISDA published various standard documents of general application in November 2010.

An update on a new rule proposed by the CFTC covering the requirements for swap reporting and recordkeeping, including daily-trading recordkeeping, of swap dealers and major swap participants.

An update on new proposed rules by the CFTC and SEC further defining key terms under Title VII of the Dodd-Frank Act, which covers OTC derivatives.

An update on new CFTC rule proposals under the Dodd-Frank Act that would provide further guidance on definitions of key Dodd-Frank swaps terms such as "swap dealer" and "major swap participant" as well as setting forth certain requirements for swap dealers, major swap participants and derivatives clearing organizations.

An update on new rules proposed by the CFTC under the Dodd-Frank Act requiring swap data reporting to swap data repositories and outlining registration requirements for swap data repositories.

An update on the CFTC's proposed rule under the Dodd-Frank Act requiring real-time public reporting of swap transaction and pricing data.

An update on an advance notice of proposed rulemaking issued by the Financial Stability Oversight Council (FSOC) seeking comment on how it should designate financial market utilities as systemically important under the Dodd-Frank Act.

An update on SEC rules extending certain exemptions for eligible credit default swaps to July 16, 2011.

An update on the CFTC's proposed new rules under the Dodd-Frank Act outlining the governance and risk-management compliance activities of swap dealers and major swap participants, and requiring designation of a chief compliance officer and annual compliance reports to mitigate systemic risk of OTC derivatives trading activity.

An update on a proposed rule issued by the SEC under the Dodd-Frank Act that would prohibit fraud and manipulation in connection with security-based swaps.

An update on a proposed rule on the review of non-security-based swaps by the CFTC to determine whether they must be cleared.

An update on the possible exemption of foreign exchange swaps, foreign exchange forwards, or both, from swaps regulation under Dodd-Frank.

An update on a speech by CFTC Chairman Gary Gensler indicating that swap regulations implemented under Dodd-Frank will apply to foreign banks doing business in the US.

An update on the CFTC's proposed regulations to implement minimum financial resources requirements for derivatives clearing organizations. 

An update on the CFTC's interim final rule under the Dodd-Frank Act requiring data retention and reporting for unexpired swaps entered into before July 21, 2010.

ISDA published two standard documents of general application in September 2010. 

The European Commission has issued a joint statement by Commissioner Michel Barnier and Gary Gensler, US Commodity Futures Trading Commission Chairman, on the financial reform agenda which focuses on the reform of the over-the -counter derivatives market.

An update on a series of preference lawsuits filed by Lehman Brothers Holdings, Inc. (Lehman) against dozens of special purpose vehicles, 50 banks, hedge funds and investment firms in which Lehman claims that "flip" clauses in certain collateral-backing notes cost its bankruptcy estate and its creditors more than $3 billion. 

An update on standard documents of general application published by ISDA in August 2010.

An update on the International Swaps and Derivatives Association's (ISDA's) announcement of a new project to simplify the novation process for credit derivatives and the publication of related amendments to the ISDA Novation Protocol.

An update on the SEC and CFTC solicitation of public comments and roundtable discussion on certain key terms under the Dodd-Frank Act related to swaps and derivatives.

An update on standard documents of general application published by ISDA in July 2010.

An update on the dismissal of the SEC's first enforcement action alleging insider trading of credit default swaps.

An update on standard documents of general application published by ISDA in June 2010.

An update on the 2010 ISDA Operations Benchmarking Survey.

An update on a decision by the US Bankruptcy Court for the Southern District of New York holding that the date of commencement of the Securities Investor Protection Act (SIPA) liquidation of Lehman Brothers Inc. (LBI) is the correct date to use when determining the value of LBI SIPA claims.

An update on standard documents of general application published by ISDA in April 2010.

An update on the Foreign Account Tax Compliance Act (FATCA) provisions included in the Jobs Bill to combat offshore tax evasion.

An update on standard documents of general application published by ISDA in February 2010.

An update on the launch of the ISDA/IIFM Tahawwut (Hedging) Master Agreement.

An update on the ruling in the Lehman vs. BNY case (known as Perpetual), holding that a market-standard provision in a securitization deal known as a flip clause, which is designed to subordinate swap payments when the swap provider defaults under the swap, is not enforceable if the default is triggered by a bankruptcy filing of the swap provider.

An update on standard documents of general application published by ISDA in December 2009.

An update on ISDA's new governance structure for market practice and post-trade conduct in the privately-negotiated over-the-counter derivatives industry.

An update on standard documents of general application published by ISDA in October 2009.

An update on the Lehman bankruptcy proceedings.

An update on a ruling in the Lehman Brothers bankruptcy case that is expected to make it more difficult for companies to keep derivatives contracts with bankrupt or insolvent counterparties open without making payments under those contracts.

An update on large numbers of collateralized debt obligations (CDOs) being liquidated, helping banks clear their books of toxic assets.

An update on testimony by SEC Chairman Mary Schapiro concerning proposed regulation of the over-the-counter (OTC) derivatives market and her request for greater SEC authority over credit default swaps.

An update on testimony by the CEO of ISDA on the Treasury Department's Proposed OTC Derivatives Regulations.

An update on rules from the Chinese government that will allow the largest banks in the country to impose obstacles to derivatives trading with Chinese banks.

An update on the DTCC's announcement that it will expand its Trade Information Warehouse to include historical data on credit default swaps (CDSs).

An update on a Reuters report that China's State-owned Assets Supervision and Administration Commission has warned foreign banks that the country's state-owned enterprises reserve the right to default on commodity derivatives contracts.

An update on the Futures Industry Association's (FIA) reservations about the Treasury Department's proposed reforms for derivatives clearing.

An update on the Obama administration's proposed legislation to regulate over-the-counter derivatives.

Legal update on ISDA's views on progress toward the central clearing of credit default swaps.

An update on efforts by ICE Trust to work with JPMorgan Chase & Co. and Deutsche Bank AG to create derivatives-clearing merchant units within the banks to clear credit-default swaps.

An update on potential limits to a proposed ban on naked credit default swap transactions.

An update on Eurex AG's plan to guarantee trades of certain European credit default swaps.

An update on an press release from IntercontinentalExchange, announcing an October 2009 launch of a buy-side solution to CDS clearing.

An update on CFTC Chairman Gary Gensler's testimony before the House Financial Services Committee, in which he outlined the CFTC's proposal for a comprehensive regulatory framework for over-the-counter (OTC) derivatives.

An update on the Lehman bankruptcy proceedings.

An update on the establishment by the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) of a working group to review recommendations for central counterparties.

An update on the International Swaps and Derivatives Association (ISDA) re-opening the adherence to the 2009 AEJ Derivatives Protocol.

An update on ISDA's "Small Bang" Protocol and Restructuring Supplement, which extend ISDA's standard credit default swap auction provisions to restructuring credit events.

An update on a federal District Court denying Wachovia's attempt to have a suit dismissed in which it's accused of cheating a hedge fund.

An update on the DTCC's plan to provide a facility through which firms can submit "copper" CDS trades to its Trade Information Warehouse repository.

An update on Treasury Secretary Tim Geithner's Congressional testimony on the Obama adminstration's plan for regulating over-the-counter (OTC) derivatives.

An update on the settlement of FINRA's first-ever case involving credit default swaps.

An update on fears that proposed increases in capital requirements from the Commodity Futures and Trade Commission (CFTC) will force futures brokers out of business.

An update on CUSIP Global Services' new service for US listed equity options.

An update on The Bank of New York Mellon's acquisition of a minority stake in International Derivatives Clearing Group, a unit of NASDAQ OMX Group, Inc.

An update on Markit's plans to launch a global group of credit default swap (CDS) indices that will track the perceived risks of sovereign debt.

An update on European Central Counterparty Limited's (EuroCCP's) call for all European central counterpaty clearinghouses to adopt a convention on interoperability.

An update on a market advisory notice published by CME Group on all or none transactions conducted on the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT).

An update on the use of Omgeo's Central Trade Manager by broker-dealers for cross-border and non-US trade processing.

An update on the CME Group's addition of options on certain interest rate swap futures.

An update on Depository Trust & Clearing Corporation's (DTCC) plan to create a joint venture with NYSE Euronext for clearing US fixed income securities and derivatives.

An update on an announcement by CME Group regarding changes to its trading fee schedule.

An update on the impending battle of start-up clearinghouses ICE Trust and CME Group for credit default swap (CDS) dominance.

An update on UK's Financial Services Authority's (FSA) plans to require UK banks to hold more capital against their over-the-counter (OTC) derivatives trades.

An update on remarks to a House subcommittee by executives from two major derivatives exchanges warning that too much regulation of OTC derivatives could be harmful to the US economy.

An update on Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler's testimony before the Senate Agriculture Committee, in which he outlined the CFTC's proposal for a comprehensive regulatory framework for over-the-counter (OTC) derivatives.

An update on a report by the Depository Trust & Clearing Corporation that Omgeo and EuroCCP announced they are jointly developing a clearinghouse for hedge fund-dealer derivatives trades to mitigate counterparty and operational risk and inefficiency.

An update on the announced changes by CME Group to the notional coupon rate, the block fee waiver and the listing schedule for interest rate swap futures contracts.

Funds negotiating derivatives and prime broker agreements with dealers are demanding greater care and oversight with respect to their posted collateral.

An update on negative comments from the International Swaps and Derivatives Association (ISDA) and Securities Industry and Financial Markets Association (SIFMA) on model legislation proposed by the National Conference of Insurance Legislators (NCOIL) for the regulation of credit default swaps (CDS).

An update about the NYSE Euronext's plan to launch stock index futures contracts on the NYSE Liffe US exchange.

An update on the publication of the International Swaps and Derivatives Association (ISDA) US Wind Event Confirmation template for natural catastrophe swaps referencing US wind events.

An update on the International Swaps and Derivatives Association's (ISDA) launch of its 2009 European Cancellable Form Loan Credit Default Swap (CDS) Protocol.

An update on the International Organization of Securities Commission (IOSCO) publishing a report making recommendations to improve the securitization process and restore confidence in the credit default swap (CDS) market.

An update on IntercontinentalExchange, Inc.'s planned launch of a European clearinghouse for credit default swaps in the next few weeks.

An update on legislation introduced in the US Senate to regulate swaps agreements including credit default swaps (CDS).

An update on IntercontinentalExchange Inc.'s clearing platform for credit default swaps (CDS), ICE Trust.

An update on the Japan Securities Clearing Corporation and the Tokyo Financial Exchange forming plans to begin clearing services for credit default swaps and interest rate swaps.

An update on an agreement reached in Europe that will change the terms of credit default swaps.

An update on a demand by the New York Insurance Department to Allstate Corporation for information on its participation in credit default swap transactions in "unregulated insurance markets."

An update on an announcement by the Federal Reserve of new temporary reciprocal currency arrangements.

An update on the proposed merger between the Depository Trust & Clearing Corporation and LCH.Clearnet.

An update on China looking to enter more swap accord agreements in a move to bolster international trade.

An update on the Commodity Futures Trading Commission issuing an exemption to the Chicago Mercantile Exchange in order for it to begin clearing certain agricultural swaps.

An update on a new re-couponing service announced by T-Zero to support the transition to ISDA's standardized single-name CDS contracts.

An update on ISDA's new auction settlement supplement and protocol, to be used to "hardwire" auction settlement terms into standard credit default swap documentation.

An update on ICE Trust, which has now begun operations to clear credit default swaps in the US.

An update on the expansion of LCH.Clearnet's business into the US.

An update on Congressional testimony of Robert Pickel, CEO of the International Swaps & Derivatives Association, on the role of credit default swaps in the financial crisis.

An update on ICE Trust, the first credit default swap clearinghouse to begin operations in the US.

An update on ISDA's publication of the 2009 Americas Master Equity Derivatives Confirmation Agreement.

An update on IntercontinentalExchange Inc.'s plans to buy out The Clearing Corporation and establish a US clearinghouse for credit default swaps.

An update on CME's plan to establish a clearing serivce for over-the-counter credit default swaps in London.

An update on changes to the Markit iTraxx Europe Rules.

An update on an ISDA announcement that leading CDS dealers have committed to clearing CDS contracts through a European Union clearing platform.

An update on the CME Group announcing the launch of a smaller version of foreign exchange contracts.

An update on plans by LCH.Clearnet and IntercontinentialExchange, Inc., to launch clearing services for credit default swaps in Europe.

An update on the comment released by the ISDA on the industry approach to central counterparty for CDS and the European Commission's recent statements urging regulation.

An update on the new monthly report that the CFTC is launching on a six-month trial basis.

An update on the EU Internal Market Commission requiring banks in Europe to clear their off-exchange credit derivatives and cut risk for investors.

An update on the Lehman bankruptcy proceedings.

An update on CME Group's electronic derivatives trading platform, CME Globex.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Depository Trust and Clearing Corporation providing non-discriminatory support to central counterparty solutions for credit default swaps.

An update on the impact of the Tribune Company bankruptcy on the sellers of credit default swaps (CDS).

An update on the launch of the International Derivatives Clearinghouse.

An update on the SEC's approval of the proposal from NYSE Euronext Liffe to provide a centralized of credit default swaps with LCH.Clearnet.

An update on the Lehman bankruptcy proceedings.

A legal update on the Lehman bankruptcy proceedings.

An update on the Tribune Company's bankruptcy.

An update on Congressional testimony from executives of exchanges in the US, UK and Germany each proposing to create a centralized clearing platform for the trading of credit default swaps.

An update on the formation of a credit default swap clearinghouse by IntercontinentalExchange, Inc.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

An update on the Lehman bankruptcy proceedings.

A legal update on the Lehman bankruptcy proceedings.

The CFTC has further delayed, until June 30, 2013, the compliance date for certain Dodd-Frank swap data recordkeeping requirements for SDs and MSPs, which were scheduled to take effect March 31, 2013.

In Lehman Brothers International (Europe) v Lehman Brothers Finance SA [2012] EWHC 1072 (Ch) (27 April 2012), the High Court gave guidance on how to construe the close out provisions of the 2002 ISDA Master Agreement.

In Pioneer Freight Futures Company Ltd v TMT Asia Ltd [2011] EWHC 1888 (Comm), the High Court has held that payment obligations that are suspended under section 2(a)(iii) of the 1992 ISDA Master Agreement should be taken into account for netting purposes under section 2(c).

An issuing bank is free to set-off a beneficiary's debts against payment under letter of credit, even where the beneficiary owes those amounts under a completely unrelated transaction. Lehman Brothers Commodity Services Inc. v Credit Agricole Corporate and Investment Bank [2011] EWHC 1390 (Comm).

In Britannia Bulk plc v Pioneer Navigation Ltd and others [2011] EWHC 692 (Comm), the High Court considered the combined effect of the Automatic Early Termination, Loss and Second Method provisions under a 1992 ISDA Master Agreement and concluded that a non-defaulting party cannot rely on section 2(a)(iii) of that agreement to formulate a "nil loss" argument against a defaulting party's claim for payment of close-out amounts. NOTE: this case was upheld by the Court of Appeal on 3 April 2012, see Legal update, Section 2(a)(iii) ISDA Master Agreement: Court of Appeal judgment on four appeals.

An update on the settlement reached by Lehman Brothers Holdings Inc. with BNY Corporate Trustee Services Ltd. and Perpetual Trustee Co. Ltd. in the "flip-clause" cases.

An update on Marine Trade S.A. v Pioneer Freight Futures Co Ltd BVI and Armada (Singapore) PTE Ltd [2009] EWHC 2656 (Comm).