Fri, Apr 18, 2014
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

Banner
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 Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably