Month: August 2009

Obama Administration Proposes Over-the-Counter Derivatives Markets Act of 2009

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On August 11, 2009, the Obama Administration proposed the Over-the-Counter Derivatives Markets Act of 2009 (the “Proposed Act”), the long-awaited bill intended to comprehensively regulate for the first time dealers and major counterparties engaged in the over-the-counter (“OTC”) derivatives market.  The Proposed Act would overhaul the framework for regulation of OTC derivatives transactions, effectively reversing the exclusions and exemptions afforded to many such contracts under the Commodity Futures Modernization Act of 2000, which modified the Commodity Exchange Act, as amended (“CEA”). READ MORE →

ISDA Launches CDS Marketplace

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On August 11, 2009, the International Swaps and Derivatives Association, Inc. (“ISDA”) launched CDS MarketplaceSM, a website relating to the credit default swap (“CDS”) market. The website serves many purposes, including educating viewers about the use and function of the CDS market and providing viewers with current market trading and pricing information. The website consists of four sections: (i) About the CDS Market (which provides a description of CDS transactions and the CDS market generally), (ii) Daily Prices (which provides links to prices for and spread changes on various indices and single-name credits), (iii) Exposures & Activity (which provides information about CDS trading volumes and trading activity) and (iv) Market Statistics (which provides information on certain CDS contract terms and links to data sources publishing CDS-related statistics).

CDS MarketplaceSM was developed with the support of a subsidiary of The Depository Trust & Clearing Corporation, Markit and Moody’s Analytics.

Lehman Subordination Case to Continue in U.S. Bankruptcy Court

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On August 11, 2009, Judge James Peck of the Federal bankruptcy court in New York denied a motion by a unit of The Bank of New York Mellon Corp. (“BNYM”) to dismiss an action by a subsidiary of Lehman Brothers Holdings Inc. relating to the priority of claims in connection with credit-linked notes (“CLNs”) issued by a program known as “Dante”. The Lehman subsidiary had entered into credit default swaps relating to the CLNs and claims that it is owed $70 million in connection with their early termination. The BNYM unit acted as trustee under the Dante program. READ MORE →