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., and members of our derivatives team are also outside counsel on derivatives matters for the Managed Funds Association. We are 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 the regulatory initial margin rules for uncleared swaps that will be effective for certain buy-side clients beginning in September 2019
- 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 the 2018 U.S. Resolution Stay Protocol
- Extra-territorial reach of the Dodd-Frank Act and global regulatory reforms of the derivatives markets
- FINRA margin requirements for forward transactions in securities and related documentation