Tue, Jun 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

CFTC changes the definition of a US Person in swaps rules

Wednesday, August 21, 2013

Bailey McCann, Opalesque New York:

In July, the Commodities Futures Trading Commission (CFTC) issued final guidance on swaps compliance issues, and in that guidance the regulator quietly changed the definition of what it means to be a US person.

According to new, and final guidance that has already gone into effect, a US person is now amended solely with respect to the Commodity Exchange Act’s swap provisions and CFTC swap regulations. Under the new definition, US Person can also mean hedge funds and other collective investment vehicles which are either based in the US or primarily controlled by a US citizen.

According to a client alert from professional services firm Kinetic Partners, in order to meet amended compliance requirements, firms may want to consider the following:

  • Determine if any investment vehicles are caught by the new U.S. Person definition;
  • Determine if the funds enter into swaps subject to clearing;
  • Certify to each investment vehicle’s counterparties whether the investment vehicle is a U.S. Person;
  • Speak with investment vehicle’s counterparties and determine if the counterparty is a U.S. Person and, if not, obtain a 'Non-U.S. Person’ representation from the counterparty;
  • Determine who is going to report the swap transaction where applicable; and
  • Start negotiating with each investment vehicle’s counterparties the relevant tra......................

    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. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s