By Stephen A. Keen & Andrew P. Cross
Our last post outlined the essential differences between VaR Funds and Limited Derivatives Users: primarily that the former must adopt a derivatives risk management program (a “DRM Program”) while the latter need
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.
By Stephen A. Keen & Andrew P. Cross
Our last post outlined the essential differences between VaR Funds and Limited Derivatives Users: primarily that the former must adopt a derivatives risk management program (a “DRM Program”) while the latter need…
By Stephen A. Keen and Andrew P. Cross
Our last post explained the two basic alternatives for managing derivatives risks under new Rule 18f-4 by qualifying either as a Limited Derivatives User or a VaR Fund. This post outlines the essential…
By Stephen A. Keen & Andrew P. Cross
Rule 18f-4 is somewhat unusual in that it gives management investment companies (including business development companies but excluding money market funds, “Funds”) alternative means of complying with its exemption from Sections 18…
By Stephen A. Keen and Andrew P. Cross
Having completed our review of derivatives transactions, we now consider the risks such transactions may pose. Rule 18f-4(a) defines “derivatives risks” to include “leverage, market, counterparty, liquidity, operational, and legal…
This post completes our exploration of the definition of “derivatives transactions” in Rule 18f-4, which is relevant to business development companies, closed-end funds and open-end funds other than a money market fund (“Funds”). Our object is to generate…
By Stephen A. Keen and Andrew P. Cross
In this post, we continue our exploration of the definition of “derivatives transaction” in new Rule 18f-4, which is relevant to business development companies, closed-end funds and open-end funds other…
By Stephen A. Keen & Andrew P. Cross
In this, the twelfth installment of our review of the compliance requirements of new Rule 18f‑4, we leave the peripheral transactions addressed in the rule (i.e., delayed-delivery transactions, reverse repurchase agreements…
By Stephen A. Keen & Andrew P. Cross
This eleventh installment of our review of the compliance requirements of new Rule 18f‑4 as it applies to business development companies, closed-end funds and open-end funds other than money market funds (“Funds”)…
By Stephen A. Keen and Andrew P. Cross
This is the tenth installment of our review of the compliance requirements of new Rule 18f‑4 as it applies to business development companies, closed-end funds and open-end funds other than a money…
By Stephen A. Keen & Andrew P. Cross on March 4, 2021
This is the ninth installment of our review of the compliance requirements of new Rule 18f‑4. Our last post explained why unfunded commitment agreements present asset sufficiency risk…