Advanced Swaps & Other Derivatives 2023

Why You Should Attend

The Dodd-Frank Act established a novel, comprehensive framework for the regulation of over-the-counter (OTC) derivatives and the market participants who transact in these products.  That regulatory framework, split primarily between the SEC and CFTC, has been substantially implemented by the CFTC, and security-based swap dealers and major security-based swap participants are now subject to registration and regulation by the SEC and security-based swaps will begin to be reported to trade repositories in November 2021.

The regulatory regime touches the activities of all participants in the swaps markets, from end-users to major swap participants to swap dealers.  The regulations also affect a broad range of market facilities from clearinghouses to exchanges, to newly conceived swap execution facilities and swap data repositories, and other regulatory initiatives that are also reshaping the market.

The Dodd-Frank Act imposes registration requirements, mandatory clearing and trading requirements, margin requirements, capital and business conduct standards, and transaction and position reporting, as well as limitations on swap positions.

The legislation also established limitations on the scope of derivatives and proprietary trading activities that may be conducted by certain financial institutions.

At this program, our distinguished faculty will provide a comprehensive overview of the evolving regulatory framework for OTC derivatives and derivatives market participants, and explain how the regulatory framework affects these products, the structure of the market for these products and market participants.  The program will also cover documentation issues, and recent developments in tax, accounting and litigation related to OTC derivatives, as well as professional responsibility issues associated with derivatives.

What You Will Learn

After completing this program, participants will be able to:

• Recall views from industry thought leaders on the state of the derivatives markets: problems, opportunities, likely regulatory priorities 
• Better understand the comprehensive analysis of the current regulatory framework for OTC derivatives:
  • What is the status of clearing and trading requirements?
  • What are the reporting requirements?
  • How is fintech developing and affecting the swaps markets? 
  • What are the major CFTC changes affecting reporting and conduct rules? 
  • Implementation of security-based swap dealer registration, substituted compliance, and security-based swap transaction reporting 
  • When must swap market participants be registered as futures commission merchants?
  • How have banks and their affiliates been affected by limitations on derivatives and proprietary trading activities?
  • CFTC and SEC requirements for margin on uncleared swaps, capital requirements, effects on liquidity
  • What developments have been occurring in the CPO/CTA (funds) space?  
  • What changes have been made to existing insolvency law or are being considered? What is the Resolution Stay Protocol?
  • How are the amended federal commodity and securities laws affecting brokers, advisors and funds transacting in OTC derivatives?
• Structure and implement OTC derivatives transactions 
• List developments in the swap activities of banks and Volcker developments  
• Describe the NFA and CFTC intermediary coverage and coordination and their current priorities
• Recall tax and accounting developments applicable to derivatives
• Discuss professional responsibility and its relationship to derivatives
• Restate enforcement trends and litigation developments 

Who Should Attend

This program is intended for experienced outside counsel, in-house attorneys, government lawyers, documentation managers, compliance officers, bankers, corporate and other end-users of swaps, and others involved in advanced structuring, negotiating and executing swap agreements and other derivative products. Counsel to derivatives market facilities and others involved in structuring, negotiating and executing swap agreements and other derivative products will also benefit from attending this program.

Program Level: Advanced

Prerequisites: Experience with, and knowledge of, swaps and derivatives.