Archives: Derivatives

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Key Issues in OTC Derivatives Contracts as COVID-19 Disrupts Global Financial Markets

It has been an extraordinary few weeks as businesses face challenges presented by the COVID-19 outbreak.  Companies are grappling with a multitude of issues — from the health and safety of employees to increased cyber security risks to financial and operational stability.  Understandably, assessments of significant contractual and market exposures have been prioritized.  Potential exposures … Continue Reading

Derivatives: Non-Cleared Swaps Variation Margin Update – Limited Relaxed Enforcement by the CFTC, Prudential Regulators and European Supervisory Authorities

Recently, the U.S. Commodity Futures Trading Commission (“CFTC”), the U.S. Prudential Regulators[1] and the European Supervisory Authorities (“ESAs”)[2] have offered limited relief from or guidance for relaxed enforcement of variation margin requirements for non-cleared swaps that take effect March 1, 2017.  This news follows reports that, despite all efforts, market participants are facing continued legal … Continue Reading

Derivatives: ISDA Announces 2016 New York Law Variation Margin Credit Support Annex

On April 14, 2016, the International Swaps and Derivatives Association, Inc. (ISDA) announced the 2016 ISDA Credit Support Annex for Variation Margin for use with New York law transactions (the 2016 CSA). ISDA is in the process of updating certain of its documents to account for recent regulatory reforms.  The 2016 CSA introduces updates to … Continue Reading
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