Funds and the Derivatives Markets: Recent Developments and Ongoing Challenges
Dechert’s Global Commodities & Derivatives Team prepared the attached paper at the request of the Investment Company Institute (“ICI”) describing recent developments and ongoing challenges in the swaps regulatory framework in connection with the December 10, 2014 ICI Securities Law Developments Conference. The authors were Holland West, Phil Hinkle, Matt Virag and Kiki Richardson with significant contributions from Abbie Bell, Dan Deacon and Victor Bieger.
This paper discusses, among other things:
- the CFTC’s new swap clearing and exchange trading mandates and processes,
- proposed margin requirements for uncleared swaps,
- CFTC, SEC and EMIR regulation of cross-border swaps activities, and
- certain other regulatory developments relevant to buy-side market participants.
Many investment managers and other swap market participants are currently grappling with the issues raised in this paper in the rapidly changing international regulatory environment.