Tag Archives: margin

2015 CFTC Regulatory Agenda

As 2015 is now underway, we wanted to highlight some of the potential regulatory developments from the CFTC that may arise in the new year. Overall we expect 2015 to be a year of continued CFTC implementation of the Dodd-Frank rules and related "tweaks" to those rules to address the concerns of end-users and market participants.… Continue Reading

Comparing Collateral Segregation Regimes for Uncleared Swap Margin

The proposed margin rules from the CFTC and the prudential regulators, when considered alongside the existing CFTC collateral segregation rules, present the potential for three different collateral segregation regimes applying to initial margin posted to a swap dealer. To compare the differences, we have created a chart of the three collateral segregation regimes.… Continue Reading

The Debt Ceiling Debate: It’s not Just for CDS Anymore

By Andrew Cross and Tom Watterson Last week ISDA announced that, in the event of a default by the U.S. on its debt following the failure to raise the debt ceiling, the sellers of CDS on U.S. debt would pay-out, at most, only $3.6 billion. The potential default, however, is also impacting┬áthe interest rate swap … Continue Reading

Fourth Circuit Concludes that Certain Commissions and Margin Interest Payments are Protected from Avoidance by “Stockbroker Defense”

By Todd Zerega and Luke Sizemore CASE SNAPSHOT In a case of first impression, the Fourth Circuit determined that broker commissions shown to be reasonable and customary parts of settling stock sales constitute "settlement payments" and that the payment of margin interest constitutes "margin payments" under section 546(e) of the Bankruptcy Code such that these … Continue Reading

MARGIN REQUIREMENTS: On the Agenda for the 13th Public Meeting

The CFTC has announced that it will hold its (rescheduled) 13th Public Meeting on Dodd-Frank Reforms on Tuesday, April 12th at 9:30 a.m. EST. On the agenda…"Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants"… Press Release and "How to Participate" is available here. Good day. Good reading. TSR.… Continue Reading