Orrick’s Derivatives in Review – December 2014

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The Bitcoin Marketplace and Regulatory Atmosphere: A Summary

Startup companies and lending options centered on bitcoin still burgeon, leading to various regulators lately proposing rules, making pronouncements, and taking enforcement actions associated with bitcoin. This short article outlines significant firms and merchandise within the bitcoin space and summarizes the overall condition of bitcoin regulation.

British Court Addresses Derivatives Close-outs

Our Prime Court of Justice, Queen’s Bench Division, Commercial Court, issued a viewpoint that addressed several issues concerning the calculation of early termination amounts within standard derivatives master agreement, along with the calculation of default interest underneath the master agreement. The choice provides an item of reference for the way one court viewed the calculation of early termination damages and calculations for default interest under derivatives master contracts.

SFIG Provides Comment Letter on Re-Suggested Margin Rules for Uncleared Swaps

The Structured Finance Industry Group posted a remark letter towards the Board of Governors from the Fed System along with other prudential regulators and also to the CFTC associated with suggested margin needs for securitization transaction swaps. The comment letter highlights the difficulties the securitization industry would face if such needs were enforced and, amongst other things, argues that variation margin is unnecessary because substantial overcollateralization and priority of payment needs already address swap counterparty credit concerns that such margin is supposed to address.

2014 NLJ Regulatory and Compliance Summit: “Virtual Currency: Regulators Consider Bitcoin Regulation”

Audio from the panel discussion, moderated by Nikiforos Mathews, Washington, Electricity, December 2.???

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