Davis Polk Discusses Potential SEC and CFTC Updates to Classification Rules for Innovative Financial Products

By Gabriel D. Rosenberg, Christopher S. Schell, Tyler X. Senackerib, Amy M. Starr and Zachary J. Zweihorn July 6, 2026 by renholding

The SEC and CFTC (the “Commissions”) have jointly requested public comment on how to draw clearer regulatory boundaries for classifying, within statutory bounds, innovative derivatives and related products that implicate the jurisdiction of the Commissions and whether there are opportunities …

Crypto-Derivatives

By Marco Dell’Erba February 3, 2026 by renholding

In a new article, I examine how the role of derivatives in the crypto industry compares in terms of sophistication and leverage with their role in traditional finance. Engaging in the first qualitative and empirical analysis of the issue, …

Federal Judge Trips Over Tricky Statutory Language, Eviscerating CFTC Jurisdiction

By Ilya Beylin September 3, 2025 by ilyabeylin

Derivatives lawyers are not known to be an excitable bunch. But a recent opinion from the U.S. District Court in the Northern District of Texas has derivatives lawyers excited, and not in a good way. The judge has vastly restricted …

Are We Investing or Gambling?

By Karl Lockhart July 28, 2025 by renholding

Few in business or law are talking enough about the national legalization of sports gambling. For the last few months, anyone, in any state, has been able to place wagers on the outcome of professional baseball, basketball, hockey, and tennis …

Enhancing Investor Margin Transparency for Centrally Cleared Derivatives

By Lynn Bai May 23, 2025 by renholding

Margins serve as a critical mechanism for mitigating default risk in centrally cleared derivatives. Brokerage firms, acting as intermediaries, may impose supplemental margins on investors beyond those required by clearinghouses. A January 2025 policy report from global financial regulators recommended …

FDIC Chair Discusses Three Financial Crises and Lessons for the Future

By Martin J. Gruenberg January 15, 2025 by renholding

For better or worse, over the course of my career, I have had the opportunity to participate in the response to three financial crises – the thrift and banking crisis of the 1980s and early 1990s as a member of …

Chapman & Cutler Discusses Credit Risk Transfer, Simplified

By Curtis Doty, Tim Mohan, Juan Arciniegas, Aaron Efta and Peter Hong December 2, 2024 by renholding

A well-trodden path for banks to achieve regulatory capital reductions by mitigating credit risk is through a synthetic securitization, either by issuing credit-linked notes (CLNs)¹ or engaging in bespoke bilateral credit derivative transactions. These transactions—while complex to execute—offer the …

Willkie Farr Discusses Final CFTC Guidance on Voluntary Carbon-Credit Derivatives Contracts

By Kari Larsen, Neal Kumar, Tamika Bent and Imani Martinez October 29, 2024 by renholding

In recent years, the U.S. Commodity Futures Trading Commission (“CFTC”) has expressed concern about the lack of cohesive product standards and the potential for fraud within the voluntary carbon markets. Just this month, the CFTC announced its first …

CFTC Jurisdiction Should Not Extend to Event Contracts

By Ilya Beylin September 23, 2024 by ilyabeylin

Two weeks ago, there was big news for “event contracts,” which provide for fixed payouts upon the occurrence of specified events and are sometimes referred to as “prediction” products. Kalshi – an exchange that has popularized event contracts on everything …

Is Mandatory Clearing of Single-Name Credit Default Swaps a Good Idea?

By Randy Priem June 18, 2024 by renholding

In a new paper, I discuss whether mandatory central clearing of single-name credit default swaps (CDS) should be adopted in the United States and Europe — an issue with important consequences for financial stability in both regions.

CDS are financial …

Davis Polk Discusses FinCEN, CFTC Penalties on Cryptocurrency Derivatives Exchange

By Robert Cohen, Jai Massari, Daniel Stipano, Zachary Zweihorn and Kendall Howell August 19, 2021 by renholding

The CFTC and FinCEN recently announced a settlement with BitMEX for $100 million to resolve an enforcement action related to the exchange’s failure to register as a futures commission merchant and failure to establish a BSA/AML compliance program.

The Order

…

Democrats’ Gift-Wrapped Cloak of Secrecy for Wall Street

By Joshua Mitts August 11, 2021 by renholding

On July 29, 2021, the House Financial Services Committee voted to advance H.R. 4618, The Short Sale Transparency and Market Fairness Act, a well-intentioned bill with a misguided provision that was likely the product of hurried drafting. The legislation …

SEC Chair Gensler Speaks Before ABA Derivatives and Futures Law Committee

By Gary Gensler July 22, 2021 by renholding

Thank you for the kind introduction. It’s good to be back with the American Bar Association’s Derivatives and Futures Law Committee.

As is customary, I’d like to note that I’m not speaking on behalf of my fellow Commissioners or the

…

Clifford Chance Discusses the Cost of Commodities and Derivatives Market Enforcement Cases

By David Yeres and Brian Yin March 30, 2021 by renholding

The trend of escalating penalties for derivatives and commodities market abuse violations continued in 2020. Civil monetary penalties exceeding $100 million have become commonplace for serious corporate violations. Moreover, the DOJ routinely conducts criminal investigations in parallel with the CFTC, …

Simpson Thacher Discusses SEC Framework for Use of Derivatives by Regulated Funds

By David Blass, Ryan Brizek, Rajib Chanda, Debbie Sutter and Andy Madore March 12, 2021 by Nisha Chandra

In a widely anticipated action that was years in the making, the SEC adopted Rule 18f-4 under the 1940 Act prior to the conclusion of former Chair Jay Clayton’s tenure. The rule overhauls the regulatory framework for the use of …

Latham & Watkins Discusses IBOR Fallbacks Protocol and Supplement from ISDA

By Yvette D. Valdez, Becky Critchley, Adam Bruce Fovent, J. Ashley Weeks, Deric Behar and Anna Lewis-Martinez November 16, 2020 by renholding

On October 23, 2020, the International Swaps and Derivatives Association, Inc. (ISDA) published its IBOR Fallbacks Protocol (Protocol) and Supplement to the 2006 ISDA Definitions (Supplement) in anticipation of the expected discontinuation of the London Interbank Offered Rate (LIBOR) at …

SEC Chair Clayton Speaks on Regulations for Funds’ Use of Derivatives

By Jay Clayton October 29, 2020 by renholding

Today [October 28], we are considering a new rule to provide an updated and comprehensive regulatory framework for the use of derivatives by registered investment funds, including mutual funds and exchange traded funds (ETFs). I have spoken before on the

…

Stealth Takeovers: How Hidden Shareholders Are Buying Companies

By Pietro Bonetti, Miguel Duro and Gaizka Ormazabal April 1, 2020 by renholding

In 2014, luxury firms LVMH Moët Hennessy, Louis Vuitton, and Hermès signed a truce, ending a long and arduous battle popularly known as the “handbag war.” The melee erupted in October 2010, when the fashion giant controlled by Bernard Arnault …

SEC’s Director of Investment Management Division Talks Securities Law Developments

By Dalia Blass December 4, 2019 by renholding

Good Morning. Thank you Susan [Olson], and thank you all for the opportunity to come back and update you on the Division’s work.[1]

I recently came across a September Compliance Minute Podcast, titled: Where Have you Gone, Dalia Blass?

…

SEC Commissioners Jackson and Lee on Proposed Rules for Funds’ Use of Derivatives

By Robert J. Jackson, Jr. and Allison Herren Lee November 27, 2019 by renholding

Yesterday [November 25] the Commission proposed rules on funds’ use of derivatives to obtain leverage.[1] Appropriate use of derivatives can produce benefits for investors, like better risk-adjusted returns or more efficient exposure to certain asset classes. But that same

…

1 2 Next »

The CLS Blue Sky Blog

Columbia Law School's Blog on Corporations and the Capital Markets

derivatives