Continental Breakfast & Registration
- Regulatory initiatives, rule-makings, interpretations, enforcement actions during the past year and possible agenda items for the next year
- What is the DFA’s impact on hedge funds, collective investment vehicles, banks, and end-users to date?
- What are the issues that have developed since the implementation of the clearing and reporting rules?
- How are business practices adjusting to the changes?
- The interplay between regulatory agencies – how the CFTC, SEC,
FERC, the Fed and the US Treasury overlaps are shaking out
- Are markets any safer today?
- Impact of the ISDA® Resolution Stay Protocol
Director & Assistant General Counsel – Fixed Income Derivatives
Bank of America Merrill Lynch
- Which regulations will govern?
- What is the standard for determining whether Dodd-Frank applies?
- What standards will the CFTC use to determine whether a country satisfies the “substituted compliance” test?
- How do the CFTC’s regulations apply to transactions or entities in jurisdictions for which there is not a finding of “substituted compliance”?
- What will be the effect on entities or transactions in these jurisdictions?
- How should the rules be harmonized among countries?
- How is it impacting foreign dealers and US dealers with foreign branches or affiliates? How is it affecting hedge funds and other collective investment vehicles?
- What are the issues arising in implementation of MiFID and EMIR?
- Possible reconciliation with the SEC?
- What’s the trigger for becoming a swap dealer and what can be done, if anything, to stay below triggering levels?
- To the extent that one is considered to be a swap dealer, in dealing with the counterparties, what are the transaction and entity level rules?
- What are the execution and clearing requirements?
- Under what circumstances will one be required to execute and clear?
- Must a US Person who engages in a swap transaction with a non-US swap dealer clear the swap on a DCO or not?
- What changes, if any, are needed with respect to LSOC regarding swaps involving non-US firms?
- Trade reporting for OTC derivatives
- How the regulations within EMIR may be parallel but not necessarily synergistic with the US
- How EMIR is intended to regulate the European financial market and slower time schedule with the US with a different focus
- What are the distinctions between EMIR and Dodd-Frank?
What are the different rules on capital? What effect does the different rules have on the customer?
- Margins on uncleared swaps
- Regulators’ concern with not delivering enough collateral
- Requiring enough capital to hold in reserve
- Regulators’ concern with over leveraging and borrowing too much to cover for a rainy day
- Clear the margins or meet the dealer’s margin?
- Pending rules from European regulators on over the counter margins
- How are the dealers/banks dealing with compliance obligations?
Bruce B. Fekrat
Group Executive Director and Associate General Counsel
- What are the position limits set forth by the CFTC?
- How do these limits affect the market?
- Position limits for energy, commodities and aggregation for trades
- What are the exceptions to the rules on limiting trades?
- Bona fide hedges
- Trades that cancel each other out
- What is the effect of going over a limit?
- What are the types of sanctions?
- Position limits to reduce speculation and decrease volatility
Networking Luncheon for Speakers and Delegates
Ronald H. Filler
Professor of Law, and Director of the Financial Services Law Institute
New York Law School
Petal P. Walker
Chief Counsel Office of Commissioner Bowen
U.S. Commodity Futures Trading Commission (CFTC)
- Do clearing houses have enough capital? Risks to banks?
- What happens if there is not enough capital? Do the members of the clearing houses pay? Do the customers pay?
- Clearing houses used as an early warning system
- Who pays for the clearing houses?
- What is the SEC’s role in clearing house mandate?
- Which transactions must go through a clearing house?: Exchanged traded transactions; Cleared swaps and derivatives; Standardized interest rate swaps; Credit default swaps
- Non-deliverable forwards and clearing
- Commercial end user exemptions for clearing
U.S. Commodity Futures Trading Commission (CFTC)
- Definition of swap in Dodd-Frank
- CFTC 7 part test on when you have volumetric optionality
- CFTC’s clarification of the Product Definition Rule
- What is the impact on end users?
- What is the significance of SEFs for market place?
- What are SEFs?: Definition and basic requirements; How do they differ from other trading platforms and services (including pre-SEF platforms)?; How different from DCMs?; Expected competitive impacts; Anonymity v. disclosure of partners; Lessons learned so far/practical challenges
- Comparisons to SEC SB-SEF Proposal
- Cross-border issues and coordination with EU
- Made Available to Trade Rule
- Block Trade Rule
- The CFTC’s role on rulemaking, decisions, and reviewing process about how trading occurs
- Trading in a multi-lateral environment
- Mandatory clearing
- How do packaged transactions work in SEF?
- What new oversight/enforcement will come out of SEF?
- Reporting requirements (ownership and control information) for major swap participants and swap dealers
- State of the CFTC’s mandatory clearing and execution mandate
- Review of Rule 1.73
David Boyd Booker
Director & Senior Counsel
Crédit Agricole Corporate & Investment Bank
- What are the issues surrounding the implementation of Volcker?
- Prohibitions and restrictions on proprietary trading
- Does the definition of proprietary trading adequately distinguish permissible market making, underwriting, and hedging activities?
- Are “solely outside of the United States” trading and fund activities overly limited by the need to avoid any US nexus?
- What new issues have been raised?
Conference Adjourns to Day Two