Prudential Regulators and CFTC Re-Propose Rules for Uncleared Swap Margin
Both the Commodity Futures Trading Commission and the prudential regulators re-proposed their April 2011 proposed rules imposing initial and variation margin requirements on banks and their counterparties in connection with uncleared swaps. The rules were re-proposed rather than simply finalized in light of significant differences from the original proposals and the issuance of the 2013 final policy framework by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions. Read more »
Major Banks Agree to Protocol "Staying" Exercise of Termination Rights
On October 18, the International Swaps and Derivatives Association, Inc. announced that eighteen major global banks had agreed to sign a protocol that imposes a stay on cross-default and termination rights under standard derivatives contracts governed by an ISDA master agreement. The terms of the protocol, which was developed in close coordination with regulators to facilitate cross-border resolution efforts and to address risks associated with the disorderly unwind of derivatives portfolios, would apply where one of the protocol signatories becomes subject to resolution action in its jurisdiction. Read more »
SIFMA v. CFTC Cross-Border Lawsuit Dismissed
The U.S. District Court for the District of Columbia dismissed, with certain exceptions, the lawsuit filed by the Securities Industry and Financial Markets Association and others challenging the Commodity Futures Trading Commission’s final cross-border guidance issued in July 2013 and the extraterritorial application of the various Commodity Futures Trading Commission rulemakings under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Read more »
SEC Adopts Cross-Border Rules
On June 25, the Securities and Exchange Commission adopted a final rule and interpretive guidance to address the application of certain provisions of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act to cross-border security-based swap activities. Read more »
