On April 22, the CFTC issued two no action letters providing relief intended to support the development of swap execution facilities (SEFs) and the trading of swaps on SEFs and designated contract markets (DCMs). The first no action letter provides relief to SEFs and DCMs from regulations to allow for the correction of trades voided as a result of clerical or operational errors or errors discovered after a trade has been cleared. The second no action letter provides relief to SEFs from certain requirements concerning trade confirmations required from SEFs for non-cleared swaps. Release. No Action Letter #1. No Action Letter #2.
Robert Moyle is a partner in Orrick’s New York office and co-head of the firm’s Structured Finance Group. Rob’s practice focuses on securitization, public offerings and private placements, as well as other types of asset financings and sales.
Rob has experience with a wide variety of asset classes, including credit and charge card receivables, auto loans and leases, dealer floorplan receivables, consumer and small business loans, student loans, tender option bonds and residential mortgages. He represents a variety of market participants, including issuers, sponsors, underwriters, placement and remarketing agents, lenders, borrowers and liquidity providers. Rob also advises clients on the application of securities laws and other financial industry regulations, including Regulation AB II and the rules and regulations promulgated under the Dodd-Frank Act.
Rob joined Orrick in 2005. He serves as Hiring Partner in the New York Office and is a member of the firm’s Professional Development Committee.
Posts by: Robert B. Moyle
FDIC Seeks Comment on Proposed Deposit Account Records Requirements for Large Banks
On April 21, the FDIC released an advanced notice of proposed rulemaking seeking comment on potential new recordkeeping standards for a limited number of FDIC-insured institutions with a large number of deposit accounts. Comments will be due 90 days after the ANPR is published in the Federal Register. Release. ANPR.
Federal Reserve Board Releases Additional Information on the LISCC Supervisory Program
On April 17, the Federal Reserve Board published a Supervision and Regulation Letter containing additional information on the operating structure of the Large Institution Supervision Coordinating Committee (LISCC) supervisory program, which was established in 2010 to oversee and supervise certain large and systemically important financial institutions. Release. Supervision and Regulation Letter.
Rating Agency Developments
On April 23, Fitch released its updated criteria for rating operational risk of U.S. servicers of RMBS and small balance commercial securities. Report.
On April 23, Fitch released its updated criteria for rating operational risk of servicers of various structured finance products, including RMBS, CMBS, and ABS. Report.
On April 22, Moody’s released its rating methodology for monitoring scheduled amortization UK student loan-backed securities. Report.
On April 21, Fitch released its updated criteria for analyzing trust-preferred CDOs. Report.
On April 17, DBRS released its updated criteria for commercial paper liquidity support for non-bank issuers. Report.
On April 17, DBRS released its criteria for rating market-linked securities. Report.
Rating Agency Developments
On March 25, S&P released its updated criteria for rating government-related entities. Report.
On March 25, Fitch released its updated criteria for rating commercial mortgage-backed securities (CMBS) in Asia-Pacific (APAC), including Japan, Australia and Singapore. Report.
On March 25, DBRS released its criteria for rating Canadian federal, provincial and municipal government STRIPS (Separate Trading of Registered Interest and Principal Securities). Report.
On March 23, S&P clarified its criteria as to what conditions must be met to raise an issue credit rating from ‘D’ (default), or an issuer credit rating from ‘D’ or ‘SD’ (selective default). Report.
On March 23, DBRS released its criteria for evaluating and incorporating external and internal support into its ratings of banks and financial institutions. Report.
On March 20, Fitch released its updated criteria for analyzing large loans in U.S. CMBS transactions. Report.
CFTC Issues Advisory on Reporting Obligations Pursuant to the Ownership and Control Final Rule
On March 23, CFTC Division of Market Oversight and Division of Swap Dealer and Intermediary Oversight issued a staff advisory to remind certain reporting parties (including futures commission merchants, clearing members, foreign brokers, swap dealers and certain reporting markets) of their obligation to obtain information on a timely basis from their customers or counterparties in order to comply with the ownership and control reports final rule (OCR Final Rule). Release. Staff Advisory. OCR Final Rule.
SEC Proposes Rule to Require Broker-Dealers Active in Off-Exchange Market to Become Members of National Securities Association
On March 25, the SEC proposed to narrow Rule 15b9-1 under the Securities Exchange Act, which exempts certain brokers or dealers from membership in a registered national securities association, in an effort to enhance regulatory oversight of active proprietary trading firms, such as high frequency traders. Release. Proposed Rule.
SEC Adopts Rules to Facilitate Smaller Companies’ Access to Capital
On March 25, the SEC adopted final rules updating and expanding Regulation A, which provides an exemption from registration for smaller issuers of securities, to implement Title IV of the Jumpstart Our Business Startups (JOBS) Act. The updated exemption (referred to as Regulation A+) will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements. Release. Final Rule.
CFPB Considers Stronger Consumer Protections for Payday Loans and Similar Debt
On March 26, the CFPB announced that it is considering stronger consumer protections relating to payday loans, vehicle title loans, deposit advance products, and certain high-cost installment loans and open-end loans. The proposals under consideration would require lenders to take steps to make sure consumers can repay their loans and would also restrict lenders from attempting to collect payment from consumers’ bank accounts in ways that tend to rack up excessive fees. Release. Fact Sheet.
Rating Agency Developments
On March 9, Moody’s released its updated methodology for rating privately-financed public infrastructure (PFI/PPP/P3) projects. Report.
On March 9, Fitch released its updated criteria for rating single- and multi-name credit-linked notes. Report.
On March 6, Moody’s released its updated methodology for rating trading companies (companies whose primary business involves trading commodities and/or goods) globally. Report.
On March 6, DBRS released its updated methodology for rating public-private partnerships (PPPs). Report.