Wed, Feb 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC, CFTC rules on dealers, major participants, and eligible contract participants will impact private investment funds

Wednesday, May 23, 2012

Bailey McCann, Opalesque New York: In April, the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), published rules that define several activities and market participants including - swaps, swap dealers, major participants and eligible contract participants. The new rules are notable because as soon as these areas are defined the Dodd-Frank Act is triggered. In this case, individuals that are required to registered as a swap dealer or participant will have 60 days to register from the effective date of the new definitions and rules in order to comply with Dodd-Frank.

According to a client alert from US-based law firm Shulte, Roth and Zable, while most private investment funds will not have to register as swap dealers, they will be impacted by individuals who do have to register as new rules will require that swap dealers ask for new collateral requirements from fund counterparties.

Of the new rules, private investment funds are unlikely to meet any of the requirements except for those of eligible contract participants (ECP). Prior to Dodd-Frank, a commodity pool was an ECP it if had $5 million in total assets, regardless of whether all of the participants in the commodity pool were ECPs. Lawyers writing in the alert note that now, "with retail foreign exchange transactions, Dodd-Frank imposes a requirement that all direct participa......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio