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Volume 10, no. 4 |
February 3, 2015 |
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On January 26, The Board of Governors of the Federal Reserve System (the “Federal Reserve”) issued “Strategies for Improving the U.S. Payment System,” (the “Plan”) which is a detailed proposal for updating the nation’s payment system. The Plan is the result of 18 months of work between the Federal Reserve and payment system stakeholders following the Federal Reserve’s release of “Payment System Improvement - Public Consultation Paper.” The Federal Reserve hopes that stakeholders can reach general consensus on the points in the Plan and will begin to implement those elements together.
The primary objectives of the Plan are to: utilize electronic advancements to increase the speed of payments for end-users while simultaneously increasing the flexibility, cost-efficiency, and certainty of the payment system for clearing and settlement organizations; increase the options available for U.S. users to send and/or receive payments internationally, and gain sufficient buy-in from stakeholders so that actions are taken by a sufficient number of entities to make the upgrades worthwhile.
Another primary objective is the safety of the payment system, and this objective has only gained in prominence following the publicity surrounding cyber-attacks directed at large retailers. The Federal Reserve stated that it is “[p]lacing high priority on improving authentication of transactions, parties and equipment in the payment process and actively pursuing ways to protect sensitive information and limit its use and availability.” Therefore, the Federal Reserve proposes to: (i) establish and lead a Payment System Task Force which, among other things, will provide advice on security matters; (ii) help implement security standards for payment systems; (iii) increase the Federal Reserve’s anti-fraud and risk-management services; and (iv) help share information regarding payment fraud data and payment security research.
In the wake of the security breaches experienced by large institutions last year and the customer and shareholder confidence concerns raised thereby, it is advisable for all payment system participants to examine the Federal Reserve’s Plan. Institutions should remain alert to further Federal Reserve announcements and should evaluate whether, and to what extent, their organization is, or should be, compliant with those announcements.
Please contact your normal Winston and Strawn attorney for additional information regarding issues of privacy, information security, or Federal Reserve regulatory compliance. |
| Sterling Sears |
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| On January 29th, the European Securities and Markets Authority (“ESMA”) published an opinion on the draft Regulatory Technical Standards on the Clearing Obligation on Interest Rate Swaps. While the opinion generally supports the European Commission’s amendments, it raises some concerns on the process for exempting non-EU intragroup transactions from the clearing obligation. |
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| On January 22nd, ESMA added the Athens Exchange Clearing House to its list of authorized central counterparties and on January 9th, reauthorized CME Clearing Europe for extended CCP activities and services. |
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| On January 9th, ESMA published updated guidance in the form of frequently asked questions and answers. Document 2015/11 addresses the application of the Alternative Investment Fund Managers Directive. Document 2015/12 discusses the guidelines on exchange-traded funds and other Undertakings for Collective Investment in Transferable Securities issues. |
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| On January 30th, the European Banking Authority (“EBA”) made available on its interactive website the EBA's Technical Standards and Guidelines associated with the Bank Recovery and Resolution Directive (“BRRD”). Using the interactive tool, users can submit questions on the application of the BRRD. EBA Press Release. |
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| On January 23rd, the EBA amended its final draft Regulatory Technical Standards on Prudent Valuation to replace the term “volatility” in Article 9 and Article 10 of the final draft Regulatory Technical Standards with the term “variance” for the purposes of computing market price uncertainty and close-out costs additional valuation adjustments. The amendment affects only institutions using the Core approach and results in a slight relaxation of the calibration of the volatility test performed under these two articles. |
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| On January 14th, the EBA opened a consultation on draft Implementing Technical Standards for resolution planning procedures, forms, and templates. The forms and templates cover the minimum required information on institutions' organizational structure, governance and management, critical functions and core business lines, critical counterparties, structure of liabilities, funding sources, off-balance sheet, payment systems, information systems, interconnectedness, authorities, and legal framework. Comments should be submitted on or before April 14th, 2015. EBA Press Release. |
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| On January 30th, Reuters summarized the comments of Andreas Dombret, an executive board member of Germany’s Bundesbank, concerning the European Central Bank (“ECB”)’s role and the coordination of the ECB’s supervision with that of national regulators. Dombret commented on the speed with which the system had been created and stated that “[people] should not expect everything to run smoothly from day one… [as it will] take some time before every detail is worked out.” Comments. |
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| On January 23rd, the ECB published the results of its December 2014 survey of credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives. The survey found only limited changes in credit terms for most counterparty types, a decrease in overall market-making activities by large banks, and a growing role for non-bank financial institutions. ECB Press Release. |
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| On January 28th, the European Commission opened its project to create a Capital Markets Union (“CMU”) for all 28 Member States by removing barriers to cross-border investment and lowering costs of funding within the EU. A key objective of the CMU will be to diversify and extend sources of funding so that businesses have easier access to credit through capital markets as well as banks. EC Press Release. |
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| On January 27th, Reuters recounted the comments of Olivier Guersent, European Commission Deputy Director-General, concerning the cross-border application of derivatives trading rules. Discussions between the U.S. and E.U. are progressing and an agreement could be reached soon. Building Bridges. |
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| On January 30th, the Federal Deposit Insurance Corporation (“FDIC”) requested comment on a proposed rule that would amend the definition of “qualifying master netting agreement” under the regulatory capital rules, and the liquidity coverage ratio rule. The FDIC also is proposing to amend the definitions of “collateral agreement,” “eligible margin loan,” and “repo-style transaction” under the regulatory capital rules. The amendments are designed to ensure that the regulatory capital and liquidity treatment of certain financial contracts generally would not be affected by implementation of special resolution regimes in foreign jurisdictions if such regimes are substantially similar to Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Federal Deposit Insurance Act, or by the International Swaps and Derivative Association Resolution Stay Protocol that provide for contractual submission to such regimes. In December 2014, the Office of the Comptroller of the Currency (“OCC”) and the Board of Governors of the Federal Reserve System (the “Federal Reserve”) adopted a related interim rule. Comments on the FDIC’s proposal should be submitted on or before March 31st, 2015. 80 FR 5063. On January 26th, the OCC issued a Bulletin on the interim final rule it jointly issued with the Federal Reserve concerning the capital and liquidity rules. The rule was effective January 1st, 2015. Comments on the OCC and Federal Reserve interim rule should be submitted on or before March 3rd, 2015. |
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| On January 30th, the FDIC published for comment a proposal that would revise certain provisions of its securitization safe harbor rule. The proposal relates to the treatment of financial assets transferred in connection with a securitization or participation. The proposal would clarify the requirements of the Securitization Safe Harbor regarding retention of an economic interest in the credit risk of securitized financial assets following the effective date of the credit risk retention regulations adopted under Section 15G of the Securities Exchange Act of 1934 (the “Exchange Act”). Comments should be submitted on or before March 31st, 2015. 80 FR 5076. |
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| On January 29th, the OCC issued a Bulletin on the final rule implementing the credit risk retention requirements of section 15G of the Exchange Act, as added by Section 941 of the Dodd-Frank Act. The final rule requires sponsors of asset-backed securities to retain at least 5 percent of the credit risk of the assets underlying the securities and does not permit sponsors to transfer or hedge that credit risk during a specified period. The final rule applies to asset-backed securities issued on or after December 24, 2015, if the securities are backed by residential mortgages. The final rule applies to all other classes of asset-backed securities issued on or after December 24h, 2016. |
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| On January 29th, the Federal Reserve requested comment on a proposed rule that would expand the applicability of the Federal Reserve's Small Bank Holding Company Policy Statement for small bank holding companies as well as certain savings and loan holding companies. The Policy Statement facilitates the transfer of ownership of small community banks by allowing their holding companies to operate with higher levels of debt than would otherwise be permitted. Institutions subject to the Policy Statement are not subject to the Federal Reserve’s regulatory capital requirements. The proposed rule allows bank holding companies and savings and loan holding companies with less than $1 billion in total consolidated assets that meet qualitative requirements to qualify. In addition, the Federal Reserve has taken steps to reduce the regulatory reporting burden for these institutions. For certain smaller institutions -- savings and loan holding companies with less than $500 million in total consolidated assets that meet the qualitative requirements in the Policy Statement -- the Federal Reserve also adopted an interim final rule to exclude these institutions from the Federal Reserve's regulatory capital requirements and has proposed to eliminate quarterly consolidated financial reporting requirements for these institutions, and instead require parent-only financial statements. Comments should be submitted within 60 days after publication in the Federal Register, which is expected during the week of February 2nd. Federal Reserve Board Press Release. |
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| On January 29th, state and federal financial regulatory agencies jointly issued guidance on private student loans with graduated repayment terms at origination. The guidance provides principles that financial institutions should consider in their policies and procedures for originating private student loans with graduated repayment terms. Joint Press Release. See also OCC Bulletin. |
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| On January 28th, the FDIC issued a Financial Institution Letter encouraging supervised institutions to take a risk-based approach in assessing individual customer relationships, rather than declining to provide banking services to entire categories of customers without regard to the risks presented by an individual customer or the financial institution’s ability to manage the risk. The FDIC also reinforced the agency’s policies on managing customer relationships to examiners and other supervisory staff. FDIC Press Release. |
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| On January 27th, the FDIC announced the release of the second in a series of three new technical assistance videos regarding compliance with certain mortgage rules issued by the Consumer Financial Protection Bureau. The first video, released on November 19th, 2014, covered the Ability to Repay and Qualified Mortgage Rule. The second video covers the Loan Originator Compensation Rule, and the third video, expected to be released in February, will cover the Servicing Rule. FDIC Press Release. |
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| On January 29th, the Consumer Financial Protection Bureau (“CFPB”) proposed changes to its mortgage rules to facilitate responsible lending by small creditors, particularly in rural and underserved areas. The proposal would (i) expand the definition of “small creditor,” raising the loan origination limit for small-creditor status from 500 first-lien mortgage loans to 2,000 and would exclude loans held in portfolio by the creditor and its affiliates; (ii) include mortgage affiliates in calculation of small-creditor status; (iii) expand the definition of “rural” areas; (iv) provide grace periods for small creditor and rural or underserved creditor status; (v) create a one-year qualifying period for rural or underserved creditor status; and (vi) provide additional implementation time for small creditors. Comments should be submitted on or before March 30th, 2015. CFPB Press Release. |
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| On January 27th, the CFPB issued a bulletin to remind supervised financial institutions of existing regulatory requirements regarding confidential supervisory information. The bulletin provides guidance on what types of information constitute confidential supervisory information and explains that disclosure of confidential supervisory information is not allowed, with limited exceptions. The CFPB is aware that some supervised financial institutions may have entered into non-disclosure agreements that purport to restrict the institution from sharing information with a regulator, or to require the institution to notify a third party when it shares information. The bulletin explains that provisions in non-disclosure agreements do not alter or limit the CFPB’s existing supervisory authority or the supervised financial institution’s obligations relating to confidential supervisory information. CFPB Press Release. |
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| On January 26th, the Securities and Exchange Commission (“SEC”)’s Division of Trading and Markets issued a no-action letter advising it will not recommend enforcement action under Rule 10b-10 of the Securities Exchange Act of 1934 against broker-dealers effecting repurchase transactions on behalf of their institutional customers that rely on MarketAxess’ electronic platform to satisfy confirmation delivery obligations to their institutional investors if all of the disclosures required by Rule 10b-10 are provided electronically. |
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| On January 23rd, the SEC’s Division of Corporation Finance took a no-action position with respect to an abbreviated, five-day tender offer for non-convertible debt securities. The no-action relief supersedes the letters issued to Goldman, Sachs & Co. (March 26, 1986), Salomon Brothers Inc. (March 12, 1986), Salomon Brothers Inc. (October 1, 1990), and any similar letters relating to abbreviated offering periods in non-convertible debt tender offers. The no-action letter confirms that the Division of Corporation Finance will not recommend any enforcement action if an offeror conducts a tender offer for non-convertible debt securities, holds the tender offer open for at least five business days from and including the date the tender offer is first published by means of “immediate widespread dissemination,” and continues to hold open the tender offer for at least three business days from and including the date of the announcement of any material change in the offer other than a change in the consideration offered. Unlike the previously issued no-action position, the relief requires: (i) “immediate widespread dissemination” of offer materials; (ii) employs a business day instead of a calendar day construct; (iii) allows for offers to be made with Qualified Debt Securities; and (iv) eliminates the distinction between investment grade and non-investment grade debt securities. |
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| On January 29th, the Division of Trading and Markets updated its Volcker Rule guidance. The updated guidance adds two new questions and answers. The first question and answer addresses that banking entities must begin meeting the filing deadline of reporting metrics within 10 days of the end of each calendar month starting in August, 2015 such that the first reporting deadline is September 10th, 2015. The second discusses the Treasury Department’s Separate Trading of Registered Interest and Principal of Securities (“STRIPS”) program. Under the program, eligible Treasury securities are authorized to be separated into principal and interest components and transferred separately. Because these separate principal and interest components are backed by the full faith and credit of the United States, the components are exempt from the Volcker Rule. Volcker Rule FAQs. |
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| On January 23rd, the SEC’s Division of Corporation Finance added two new questions to its Compliance and Disclosure Interpretations (“CDI”). The first, Question 279.01, concerns Rule 905 under the Securities Act, which provides that any “restricted securities” under Rule 144 that are equity securities of a domestic issuer will continue to be deemed to be restricted securities notwithstanding that they were acquired in a resale transaction pursuant to Rule 901 or 904. The CDI clarifies that Rule 905 only applies to equity securities that, at the time of issuance, were those of a domestic issuer. Therefore, a holder of restricted securities, which were originally acquired from a foreign private issuer in a transaction described in Rule 144(a)(3) (other than Rule 144(a)(3)(v)), may resell those securities offshore pursuant to Rule 904 and without regard to Rule 905, if the issuer no longer qualifies as a foreign private issuer at the time of resale. The second, Question 118.01, concerns Rule 304(e) of Regulation S-T, which requires information filed with the SEC to be in a searchable form. The CDI notes that with regard to required disclosures, a filer may present required information using graphics that are not text-searchable and still comply with Rule 304(e) if the filer also presents the same information as searchable text or in a searchable table within the filing. Any additional information that the filer chooses to include in the filing and that is not required to be disclosed may be presented graphically without a separate text-searchable presentation. |
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| The SEC will host a roundtable on February 19th, 2015 to explore ways to improve the proxy voting process. The roundtable will focus on universal proxy ballots and retail participation in the proxy process. The roundtable will be divided into two panels. The first panel will focus on the state of contested director elections and whether changes should be made to the federal proxy rules to facilitate the use of universal proxy ballots by management and proxy contestants. This panel also will discuss the state law, logistical, and disclosure issues presented by a possible universal proxy ballot process. The second panel will focus on strategies for increasing retail shareholder participation in the proxy process. This panel will discuss how technology might affect retail participation. In addition, this panel will discuss whether the format of disclosure could be improved to increase the engagement of shareholders and how the mechanics of voting could be improved to affect retail shareholder participation. The roundtable will be webcast live. SEC Press Release. |
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| The SEC’s Advisory Committee on Small and Emerging Companies will hold a public meeting by conference call on February 17th, 2015. The advisory committee plans to vote on recommendations regarding the definition of an “accredited investor.” The meeting will begin at 2:00 p.m. (ET) and live audio will be available on the SEC’s website. Written statements should be submitted on or before February 13th, 2015. SEC Release No. 33-9713; SEC Press Release. See also Transcript (December 17, 2014 meeting transcript). |
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| The SEC will hold an open meeting on February 4th, 2015 to consider whether to approve the 2015 budget of the Public Company Accounting Oversight Board (the “PCAOB”) and the related annual accounting support fee for the PCAOB under Section 109 of the Sarbanes-Oxley Act of 2002. Meeting Notice. |
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| On January 26th, Andrew Ross Sorkin, writing for DealBook, noted the difficulties confronting the SEC as it tries to implement the Dodd-Frank Act’s provision requiring firms to disclose their CEO’s compensation as a ratio of employee median pay. In doing so, Sorkin also discussed the potential pitfalls which accompany numerical comparisons in general. Numerical Pitfalls. |
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| On January 23rd, the Risk & Compliance Journal provided whistleblower prognostications for 2015. Whistleblower Predictions. |
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| The SEC announced that Erin E. Schneider has been named the Associate Regional Director for enforcement in the San Francisco office. The Commission also announced that Robert E. Rice, Chief Counsel to Chair Mary Jo White, will leave the agency at the end of February. |
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| On January 28th, the Wall Street Journal reported Commodity Futures Trading Commission (“CFTC”) Commissioner J. Christopher Giancarlo is proposing a new set of rules for swaps transactions which would require, among other things, examination requirements for swaps traders. Swapping Models. On January 29th, Giancarlo gave a speech in which he outlines the flaws he sees in the current CFTC swaps regulatory model and summarizes the reforms he proposes in a related white paper. Giancarlo Remarks. |
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| On January 27th, Reuters cited Clark Ogilvie, Chief of Staff to CFTC Chair Tim Massad, as saying the agency will likely approve new position limits by the end of the year. Position Limits. |
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| On January 26th, the CFTC announced the members of the Energy and Environmental Markets Advisory Committee. CFTC Press Release. |
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| On January 23rd, the CFTC’s Division of Swap Dealer and Intermediary Oversight provided certain introducing brokers (“IBs”) relief from the net capital and financial reporting requirements of CFTC Regulations 1.10 and 1.17. The conditioned relief permits foreign-domiciled IBs to file audited and unaudited form 1-FR-IBs, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of U.S. GAAP or International Financial Reporting Standards. In addition, eligible foreign-domiciled IBs will not be required to apply certain foreign currency capital charges under CFTC Regulation 1.17 and staff guidance. The relief also permits IBs to recognize as a current asset for adjusted net capital under CFTC Regulation 1.17 commission receivable balances which are promptly billed and due from their over-the-counter swap customers. CFTC Letter No. 15-02. |
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| March 2, 2015 |
Transferred OTS Regulations Regarding Possession by Conservators and Receivers for Federal and State Savings Associations. 80 FR 5015. |
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Removal of Transferred OTS Regulations Regarding Rules of Practice and Procedure and Amendments to FDIC Rules and Regulations. 80 FR 5009. |
| February 23, 2015 |
Credit Risk Retention. 79 FR 77601. |
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| February 23, 2015 |
Credit Risk Retention. 79 FR 77601. |
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| February 23, 2015 |
Credit Risk Retention. 79 FR 77601. |
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| February 23, 2015 |
Credit Risk Retention. 79 FR 77601. |
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| February 23, 2015 |
Credit Risk Retention. 79 FR 77601. |
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| March 10, 2015 |
Government Securities Act Regulations: Large Position Reporting Rules. 79 FR 73407. |
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| On January 29th, the SEC provided notice of the Chicago Board Options Exchange (“CBOE”)’s filing of a proposal that would set forth order ticket requirements applicable to complex orders in open outcry pursuant to CBOE Rule 6.53, as well as SPX Combo Orders pursuant to CBOE Rule 24.20. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd. SEC Release No. 34-74169. |
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| On January 26th, the SEC approved the Fixed Income Clearing Corporation (“FFIEC”)’s proposal to move the time of novation applicable to certain transactions submitted to FICC’s Government Securities Division and FICC’s Mortgage Backed Securities Division to earlier in the clearing process in order to provide members with additional legal certainty. SEC Release No. 34-74132. |
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| On January 26th, the SEC granted accelerated approval to Intercontinental Exchange Inc (“ICE”) Clear Europe’s proposed rule change to modify the cross-currency haircuts applied by ICE Clear Europe to Permitted Cover provided by Clearing Members in order to address recent volatility in Swiss franc exchange rates. SEC Release No. 34-74133. |
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| On January 23rd, the SEC designated March 10th, 2015 as the date by which it will approve, disapprove, or institute disapproval proceedings regarding the International Securities Exchange’s proposed modification of the manner in which the Exchange’s trading system opens trading at the beginning of the day and after trading halts and proposed codification of certain existing functionality within the trading system regarding opening and reopening of options classes traded on the International Securities Exchange. SEC Release No. 34-74126. |
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| On January 26th, the International Swaps and Derivatives Association published a position paper proposing a recovery and continuity framework for central counterparties. ISDA Press Release. |
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| On January 26th, the SEC provided notice of the Miami International Securities Exchange (“MIAX”)’s filing of a proposed amendment to MIAX Rule 402 to allow the listing of options overlying Exchange-Traded Fund Shares that are listed pursuant to generic listing standards on equities exchanges for series of portfolio depositary receipts and index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Comments should be submitted on or before February 20th, 2015. SEC Release No. 34-74131. |
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| On January 29th, the Municipal Securities Rulemaking Board (the “MSRB”) called for more transparency of the undisclosed debt of municipal bond issuers. The MSRB is concerned that investors are often unaware of the potential impact of bank loans and other debt-like obligations on the seniority status of existing bondholders and the credit or liquidity profile of an issuer. The MSRB’s market advisory highlights the importance of bank loan disclosure and provides best practices to support voluntary disclosure of bank loan information through the Electronic Municipal Market Access website. MSRB Press Release. |
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| On January 28th, the SEC instituted proceedings to determine whether to approve or disapprove NASDAQ OMX PHLX (“PHLX”)’s proposed adoption of new PHLX Rule 1081, Solicitation Mechanism, to introduce a new electronic solicitation mechanism pursuant to which a member can electronically submit all-or-none orders of 500 contracts or more (or, in the case of mini-options, 5000 contracts or more) that the member represents as agent against contra-orders that the member solicited. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd, 2015. Rebuttal comments should be submitted within 35 days after publication. SEC Release No. 34-74167. |
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| On January 23rd, the SEC approved NASDAQ OMX BX (“BX”)’s proposed establishment of a program that permits BX Market Makers to act as Directed Market Makers in their appointed options classes, provided the BX Market Maker meets certain obligations and quoting requirements. SEC Release No. 34-74129. |
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| On January 26th, the National Futures Association (“NFA”) reminded futures commission merchants (“FCMs”) of CFTC rules that require any FCM with a fiscal year ending on or before January 31st, 2015 to file this year’s Chief Compliance Officer annual report within 90 days of the firm’s fiscal year end. NFA Notice to Members I-15-07. |
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| On January 23rd, the NFA announced that effective January 26th, 2015, the minimum security deposits required to be collected and maintained by Forex Dealer Members for the Japanese yen, Australian dollar, Russian ruble, Brazilian real, and the Mexican peso have been increased. NFA Notice to Members I-15-07. |
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| On January 29th, the SEC provided notice of NYSE Arca’s filing of a proposed amendment to NYSE Arca Equities Rule 5.2(j)(3), Commentary .02 relating to listing of Investment Company Units based on municipal bond indexes. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of February 2nd, 2015. SEC Release No. 34-74175. |
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| On January 26th, the SEC provided notice of The Options Clearing Corporation’s filing of a proposed Capital Plan for raising additional capital that would support Options Clearing Corporation’s function as a systemically important financial market utility and facilitate Options Clearing Corporation’s compliance with new regulatory requirements applicable to such entities that have been proposed by the SEC but have not yet been adopted. Comments should be submitted on or before February 20th, 2015. SEC Release No. 34-74136. |
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| On January 26th, the Fourth Circuit affirmed a jury award in favor of a whistleblower that came forward under the Sarbanes-Oxley Act (“SOX”). Plaintiff, the former CFO of SouthPeak, alleged she was terminated after she raised concerns about SouthPeak’s SEC filings in violation of the anti-retaliation provisions of SOX. The Fourth Circuit held that plaintiff’s claims were timely even though they were filed more than two years after her termination. The court found that because SOX retaliatory discharge claims do not require proof of fraud, the appropriate limitations period was the four-year period provided in 28 U.S.C. Sec. 1658(a) rather than the two-year limitations period set forth in 28 U.S.C. Sec. 1658(b)(1). The court further held that the administrative complaint in this case satisfied the exhaustion requirement, and that emotional distress damages may be awarded under SOX. Jones v. SouthPeak Interactive Corp. |
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| On January 29th, Senator Elizabeth Warren, Ranking Member of the Subcommittee on Economic Policy, and Representative Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, asked certain especially large institutions to provide information on how they will manage their swaps trading activities in light of the repeal of the “swaps push-out” rule, the provision of the Dodd-Frank Act that would have prohibited federally insured banks from swaps trading. The request seeks information on how the banks will determine which swaps trades can now be made; the total value of derivatives contracts they hold; copies of applications to the OCC or the Federal Reserve to delay implementing the swaps push-out provision; and information on the total value of swaps that would have been “pushed out” absent the provision’s repeal. Warren Press Release. |
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| On January 29th, the International Monetary Fund issued a study on the securitization market. The study suggests how the securitization process can be reformed to maximize benefits and minimize risks. It also addresses how to strengthen the chain of financial intermediation and what steps can be taken to spur demand. IMF Notice. |
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| On January 28th, the International Organization of Securities Commissions published “Risk Mitigation Standards for Non-Centrally Cleared OTC Derivatives,” which presents nine standards for the mitigation of the risks present in the non-centrally cleared OTC derivatives markets. The risk mitigation standards address: trading relationship documentation and trade confirmation; process and/or methodology for determining valuation; portfolio reconciliation; portfolio compression; and dispute resolution. IOSCO Press Release. |
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| On January 24th, the New York Times noted the potential consequences on debt restructuring resulting from two recent federal district court rulings concerning the Trust Indenture Act. Restructurings. |
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| The 2014 market for M&A deals in the U.S. was robust, with the year having the most active deal flow since the 2008 financial collapse. And 2015 seems to be off to an equally strong start. Please join Winston & Strawn corporate partners Oscar David and Rob Rawn for a look back at important developments in 2014 and an overview of possible M&A trends in 2015. Webinar. |
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| For more information regarding the Financial Services Update and the Financial Services Practice please contact: Basil V. Godellas, Chair Financial Services Corporate Practice Group at
+1 (312) 558-7237 or bgodellas@winston.com, or click here to see a list of Winston & Strawn professionals with practices in the financial services industry. |
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