In recent weeks two important regulatory developments focused on diversity and inclusion (D&I) have come out of the SEC: the D&I Subcommittee of the SEC’s Asset Management Advisory Committee (AMAC) presented and received approval for its recommendations, and the
Derivatives & Repo Report
A Buy-Side Guide to Regulatory and Transactional Issues Related To Derivatives and Repurchase Agreements
The Derivatives & Repo Report, published by Perkins Coie LLP, focuses on legal and regulatory developments affecting derivatives and repurchase agreement (repo) markets. It covers topics such as Commodity Futures Trading Commission (CFTC) rule proposals and amendments, risk management program requirements for swap dealers and futures commission merchants, and regulatory changes impacting margin and capital requirements. The report also analyzes market events like repo rate spikes, market segmentation, and trading practices in bilateral repo markets. It provides insights into the intersection of financial regulation, market structure, and risk management relevant to financial institutions, asset managers, and market participants involved in derivatives and repo transactions.
Latest from Derivatives & Repo Report - Page 4
Rule 18f-4: Trimming Hedges—Hedges Included in Derivatives Exposure
By Stephen A. Keen and Andrew P. Cross
This post continues our examination of how a fund must treat hedges when calculating its derivatives exposure to qualify as a limited derivatives user. Commenters on proposed Rule 18f-4 suggested several…
Rule 18f-4: Trimming Hedges—Hedges Excluded from Derivatives Exposure
By Stephen A. Keen and Andrew P. Cross
Our post on the derivatives exposure equation began with a separate equation concerning interest rate and currency hedges. This post explains the significance of this equation and what hedges should be excluded…
Derivatives Exposure: Adjusting for Multipliers
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Derivatives Exposure: Adjusting Notional Amounts
By Stephen A. Keen and Andrew P. Cross
Our previous post gave the best account we could of what the SEC staff has said about calculating the “gross notional amount” of derivatives transactions. In this post, we examine three adjustments…
Derivatives Exposure: A Circuitous Path to “Gross Notional Amounts”
By Stephen A. Keen and Andrew P. Cross
In this post, we tackle the question of how to calculate the “gross notional amount” of a derivatives transaction for purposes of the limited derivatives user provision of Rule 18f-4. This…
Derivatives Exposure under Rule 18f-4: Notional Apples and Oranges
By Stephen A. Keen and Andrew P. Cross
Having provided two “big pictures” of the calculation of a fund’s “derivatives exposure,” we resume with an in-depth examination. We begin by considering how to determine the “gross notional amount”…
The Environmental Commodities Market—How Did it Get Here and Where Is it Going?
Kari Larsen, Partner in Perkins’ New York Office, talks to Cameron Prell, Head of Government Policy & Legal at Xpansiv CBL Holding Group, an environmental data and trading platform, about recent activity in the environmental commodities and derivatives markets.…
Updated 04.2021: CFTC Crypto Charges & Settlements Timeline
By Keith Miller, Kari Larsen and Sarah Howland
The Commodity Futures Trading Commission (CFTC) Settlements Timeline serves as an interactive compilation of select CFTC guidance, enforcement actions, and speeches relating to the application of the federal securities laws to digital…
The Derivatives Exposure Equation
By Stephen A. Keen and Andrew P. Cross
Our last post provided a big picture summary of the steps required to calculate a Fund’s “derivatives exposure” for purposes of new Rule 18f-4. The post may have left an impression…