Michele (Miki) Navazio is a partner in Seward & Kissel’s Corporate Finance group, and chair of Seward’s Derivatives and Trading practice. Miki advises buy-side clients in connection with derivatives transactions and trading related matters, including regulatory issues and developments that affect derivatives market participants. His clients include a significant number of the world’s largest hedge funds and asset managers, as well as private equity firms, funds of funds, mutual funds and corporate end-users. Miki’s derivatives practice encompasses the Dodd-Frank Act and regulations related to both systemic and counterparty risk, swap margin, central clearing and execution of OTC derivatives, collateral segregation, reporting and compliance. He has been outside counsel to SIFMA’s Asset Management Group in connection with the buy-side working group for the ISDA Resolution Stay Protocol, and and also acts as outside counsel on derivatives matters for the Managed Funds Association. Miki routinely assists clients in structuring and negotiating complex derivatives transactions involving a variety of underlying assets, developing strategies to comply with regulation, managing liquidity and margin obligations (using tools like margin lockups), as well as managing counterparty credit risk (for example, via tri-party swap margin segregation arrangements). His experience includes ISDA master agreements and collateral arrangements, tri-party custody arrangements, prime brokerage, futures and swap clearing agreements, derivatives/PB intermediation, margin lock-up agreements, repurchase agreements, ABS forward transaction agreements and securities lending agreements, master confirmations, CDS, total return swaps (including bond, loan and equity TRS), variance and volatility swaps, interest rate, FX and commodity derivatives.
Miki’s recent engagements include advising:
- A large hedge fund manager in connection with the structuring, drafting and negotiation of bespoke total return swap contracts providing synthetic exposure to Chinese bank Tier 1 CoCo bonds.
- A large hedge fund manager in connection with the sale of credit protection on a bond portfolio via a hybrid total return/credit default swap structure.
- A large hedge fund manager in the negotiation and drafting of a modified pay-as-you-go credit default swap transaction on a portfolio of securitized student loans.
- The Asset Management Group of the Securities Industry and Financial Markets Association (SIFMA AMG) and the Managed Funds Association (MFA) in connection with their participation in the ISDA working groups drafting the 2016 ISDA Variation Margin Protocol and the ISDA 2016 [Phase One/Phase Two] Credit Support Annex for Initial Margin.
- SIFMA AMG in connection with its participation in ISDA and other industry working groups related to the ISDA Resolution Stay Protocol.
- A top-10 hedge fund manager in the negotiation of a participation via total return swap in certain rate swaps linked to loans issued to a distressed company.
- The MFA on the ISDA Segregated Independent Amount working group.
- Clients on the extra-territorial reach of the Dodd-Frank Act and global regulatory reforms of the derivatives markets.
- Clients on compliance with various aspects of the Dodd-Frank Act and related derivatives regulations, including the regulatory initial margin rules for uncleared swaps that will be effective for certain buy-side clients beginning in September 2018.
- One of the largest global asset managers in the negotiation of a loan TRS facility for purposes of warehouse financing in connection with CLO launch.
- A major mutual fund complex in the negotiation of Master Securities Forward Transaction Agreements (MSFTA) in connection with new regulatory guidelines.
Miki is a frequent speaker on matters related to derivatives regulation and documentation. Speaking engagements include:
- Panelist, “Understanding Variation Margin (VM) Regulations and the 2016 ISDA Credit Support Annex for VM,” International Swaps and Derivatives Association: regular panelist for recurring ISDA conference (New York, most recent conference January 31, 2019)
- Speaker, “Non-Cleared Margin Rules,” MFA Chief Financial Officer Forum, Managed Funds Association (New York, November 8, 2018)
- Panelist, “Understanding the Use of Derivatives in Structured Finance Transactions,” Managed Funds Association OTC Derivatives Forum, (New York, February 20, 2018)
- Panelist, “Understanding and Negotiating the ISDA 2016 Credit Support Annex for Variation Margin (VM),” International Swaps and Derivatives Association (New York, May 18, 2017)
- Panelist, “What to Expect for Derivatives Regulation in 2017”, Managed Funds Association OTC Derivatives Forum, (New York, March 30, 2017)
- Panelist, “Making Sense of the EU Bank Recovery and Resolution Directive (BRRD) and Related Protocols for the Buy-Side”, Managed Funds Association OTC Derivatives Forum, (New York, March 30, 2017)
- Panelist, “Roundtable: Uncleared Derivatives,” 2017 SIFMA FIA Asset Management Derivatives Forum (Laguna Beach, CA, February 8, 2017)
- Panelist, “Negotiating the Schedule to the 2002 ISDA Master Agreement,” International Swaps and Derivatives Association (New York, June 8, 2016)
- Panelist and conference creator, “Managing Counterparty Risk in 2016 and the Future: Current Issues for Risk Managers and Legal Practitioners,” International Swaps and Derivatives Association (New York, March 1, 2016)
- Panelist, “Special Resolution Regimes,” 2016 SIFMA FIA Asset Management Derivatives Forum, (Laguna Beach, CA, February 4, 2016)
- Panelist, “Understanding Collateral Arrangements and the ISDA Credit Support Documents,” ISDA: Regular panelist for recurring ISDA conference (New York, most recent conference January 28, 2016)
- Moderator, “Client Segregation & LSOC Panel,” SCI (Structured Credit Investor) 3rd Annual OTC Derivatives Seminar (New York, October 19, 2012)