Derivatives Regulation Five Years After Dodd-Frank

An upcoming webcast and recent Client Alerts outline the current and anticipated international regulatory landscape.

December 02, 2015

Derivatives Market – 2015 Year in Review

Providing an end-of-year update on the regulatory environment for Derivatives as well as a glimpse of the year ahead.

Latham & Watkins will host its annual Derivatives Market Year in Review webcast on Wednesday, December 9, 2015, at noon EST. Attorneys from the firm's global Derivatives practice will discuss regulatory updates and market trends from 2015 and provide an outlook for what clients can expect in the year ahead.

For more details about this webcast, visit the event registration page.

Prudential Regulators First to Finalize Uncleared Swap Margin Rules

While the rules provide some clarity, the global market still awaits the finalization of the CFTC and the European margin rules.

With the clock ticking on the countdown to finalization of uncleared swap margin rules mandated under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Prudential Regulators were the first to issue final rules at the end of October. The rules establish minimum margin requirements for uncleared swaps and uncleared security-based swaps. In an effort to address industry concerns, the Prudential Regulators eased certain aspects of their 2014 proposed rules, for example lessening collateral requirements, expanding the collateral eligible to be posted for variation margin in transactions with financial end-users, narrowing the cross-border reach of the rules, raising the initial margin threshold amount and providing some accommodations for inter-affiliate uncleared swaps.

Read the full client alert here.

Dodd-Frank 5 Years Later: Where Are We Now? Derivatives Regulation for Asset Managers

Assessing the practical implications of derivatives regulations for investment advisers and investment funds of: position limits and aggregation rules, uncleared swaps margin rules, etc.

Since the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act more than five years ago, the US Commodity Futures Trading Commission (CFTC) and other regulators have finalized several rulemakings applicable to investment managers that qualify as commodity pool operators and commodity trading advisors. Investment managers — including those of private funds (i.e., funds relying on 3(c)(1) or 3(c)(7) for exemption from registration as an investment company under the Investment Company Act) — that transact in derivatives should already be familiar with the general scheme of the CFTC’s registration requirements and exemptions for CPOs and CTAs and aware of their own CPO and/or CTA status. Certain other key derivatives rulemakings are, however, on the horizon, which will likely have further practical implications for investment advisers and the funds that they manage.

Read the full client alert here.

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