Latest Articles

The Federal Reserve Board (“FRB”) has issued a proposed rulemaking to require “global systemically important banking organizations” (“GSIBs”) and their subsidiaries to limit their counterparties’ rights to terminate and liquidate uncleared derivatives and other agreements under certain conditions if the GSIB or its subsidiary enters into a bankruptcy or resolution process.  The proposal is intended to facilitate the orderly resolution of GSIBs and avoid cascading failures that could destabilize the global financial system. Rationale for Proposed…
On May 18, 2015, the CFTC published in the Federal Register its final revised 7-part Interpretation regarding “forward contracts with embedded volumetric optionality.” The final guidance provides useful clarification in determining when a contract with an embedded volumetric option qualifies for the forward contract exclusion from the “swap” and “future delivery” definitions under the Commodity Exchange Act. History of the Seven-Part Test The CFTC’s “Product Definitions Release” set forth seven factors to analyze when determining…