In the aftermath of the financial crisis, regulators in the U.S. and abroad have established a comprehensive regulatory regime for the derivatives markets. The attorneys in our derivatives practice are at the forefront of these regulatory developments, understanding that a thorough knowledge of the regulations – both where they are, and where they are going – is essential to providing our clients with the best advice possible in connection with their derivatives and trading activity.

Our team’s derivatives regulatory practice encompasses the Dodd-Frank Act and regulations related to both systemic and counterparty risk, swap margin (including forthcoming initial margin requirements), central clearing of OTC derivatives, swap execution facilities and related execution requirements, collateral segregation, swap data reporting, recordkeeping and compliance. Through a strategic alliance with Simmons & Simmons, we are able to ensure that our clients are informed of all the various regulatory issues that affect their trading. The Firm is a member of the International Swaps and Derivatives Association, Inc. (ISDA), and is currently advising the Alternative Investment Management Association (AIMA) working group relating to the SEC rules mandating the clearing of US Treasury repurchase transactions.  We are also regularly involved in relevant ISDA working groups and in the development and drafting of important ISDA protocols.

Key areas of expertise in derivatives regulation and compliance include:

  • Compliance with the Dodd-Frank Act and related derivatives regulations, including regulatory initial margin rules for uncleared swaps
  • SEC rules requiring the clearing of US Treasury repo transactions, including related Fixed Income Clearing Corporation (FICC) rules
  • FINRA Rule 4210 margin requirements for forward transactions in securities and related documentation
  • Macro-prudential efforts to mitigate systemic risk, including the Federal Reserve’s QFC Rules and limitations on the exercise of default remedies and stays on cross-defaults
  • Relevant ISDA protocols, including those related to the Dodd-Frank Act and the 2018 U.S. Resolution Stay Protocol
  • Extra-territorial reach of the Dodd-Frank Act and global regulatory reforms of the derivatives markets