Federal and state bank regulators today issued an interagency statement to provide additional information to financial institutions (“FIs“) that are working with borrowers affected by the Coronavirus Disease 2019 (“COVID-19“). This post will provide a bullet point summary of this statement.…

Equity derivatives are used by a wide range of buy-side firms.  For example, public companies use equity derivatives on their own shares for treasury management purposes (for example, share repurchase transactions and other stock buy-back programs).  Also, investment managers and their clients use equity derivatives in pursuit of investment objectives and related strategies. Given the unprecedented levels of market volatility, counterparties to equity derivatives should consider analyzing their trade confirmations to determine whether market events…

The Federal Deposit Insurance Corporation (FDIC) today issued an “FAQ” to financial institutions entitled, Frequently Asked Questions for Financial Institutions Affected by the Coronavirus Disease 2019 (Referred to as COVID-19). The FDIC has highlighted the following items in respect of this FAQ: The FDIC encourages financial institutions to work with customers affected by COVID-19 in a prudent manner, especially borrowers from industry sectors particularly vulnerable to the volatility in the current economic environment and small…

On March 9, 2020, FINRA released Regulatory Notice 20-08 (the “Regulatory Notice”) providing guidance and limited relief to its member broker-dealers during the COVID-19 pandemic. In particular, the Regulatory Notice requests that broker-dealers evaluate their compliance with FINRA Rule 4370, which requires broker-dealers to create, maintain, and update upon any material change, BCPs (Business Continuity Plans) identifying procedures relating to emergency or significant business disruption.…

The U.S. Commodity Futures Trading Commission (CFTC) yesterday announced that its Division of Market Oversight (DMO) has granted temporary no-action relief to designated contract markets (DCMs) and swap execution facilities (SEFs). In a related press release, CFTC Chairman Heath P. Tarbert stated that, “These prudent, targeted, and temporary actions will help facilitate orderly trading and liquidity in our derivatives markets. The CFTC remains squarely focused on promoting their integrity, resilience, and vibrancy through sound…

On March 18, 2020, the U.S. Commodity Futures Trading Commission (“CFTC”) Office of Customer Education and Outreach (“OCEO”) published a Customer Advisory warning market participants away from potential fraudulent schemes that may arise to take advantage of market volatility related to COVID-19. In a related Press Release, CFTC Chief Communications Officer and Director of Public Affairs Michael Short stated, “[d]uring this period of market volatility, we want to ensure the public has important information…

The U.S. Commodity Futures Trading Commission (CFTC) today announced that its Division of Swap Dealer and Intermediary Oversight (DSIO) has granted temporary no-action relief to futures commission merchants (FCMs), introducing brokers (IBs), swap dealers (SDs), retail foreign exchange dealers (RFEDs), floor brokers (FBs), and members of designated contract markets (DCMs) and swap execution facilities (SEFs) that are not registered with the CFTC in any capacity. In a related press release, CFTC Chairman Heath P.…