On May 22, the Financial Industry Regulatory Authority (FINRA) issued an open invitation for member firms and other interested parties to provide views and information about the security-based swap (SBS) market, with particular focus on broker-dealer SBS activities and the application of FINRA rules to those activities. The invitation, which is not a mandatory information request, includes the following questions:
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credit default swaps
ISDA Publishes Narrowly Tailored Credit Event (NTCE) Protocol
By Guy C. Dempsey Jr. on
Posted in Derivatives
On August 27, the International Swaps and Derivatives Association (ISDA) published a new protocol to give swap market participants an easy way to amend existing credit derivative documentation to incorporate changes that have been made to the ISDA Credit Derivatives Definitions and address the market concern about companies creating credit events for the benefit of particular credit derivative parties.
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FINRA Proposes Rule Change to Extend the Implementation of Margin Requirements for Credit Default Swaps
By Michael T. Foley & Stanley V. Polit on
Posted in Broker-Dealer
On June 14, the Financial Industry Regulatory Authority filed with the Securities and Exchange Commission a proposed rule change extending to July 18, 2018, the interim pilot program with respect to margin requirements for certain credit default swaps. The interim pilot program, which was implemented by FINRA Rule 4240, had been set to expire on…
FINRA Files Proposed Amendment to Margin Requirements for Credit Default Swaps Rule
By Ross Pazzol & Stanley V. Polit on
Posted in Broker-Dealer, Derivatives
On June 15, the Financial Industry Regulatory Authority filed with the Securities and Exchange Commission a proposed amendment to FINRA Rule 4240 (Margin Requirements for Credit Default Swaps). FINRA Rule 4240 implements a pilot program that imposes margin requirements for certain credit default swaps that are also security-based swaps. The proposed amendment would allow for…
European Commission Adopts Delegated Regulation To Require Mandatory Clearing of Certain Credit Default Swaps
By Carolyn H. Jackson & Nathaniel Lalone on
Posted in Derivatives, EU Developments
On March 1, the European Commission (EC) adopted new rules in the form of a delegated regulation (Delegated Regulation) to impose clearing obligations on certain index credit default swaps (CDSs). The contracts captured by the Delegated Regulation include euro-denominated, untranched, five-year iTraxx Europe Main and iTraxx Europe Crossover index CDS, from version 17 onwards.
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