Thu, Oct 23, 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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t