Derivatives Law and Regulation

This book provides the framework for a course in the law and regulation of derivatives. It is clear, concise and thorough, offering a user-friendly, easily teachable structure, while conveying an exciting insight into this field of law. Covered are both the long-standing regulatory regime for commodity futures and options and the regulatory regime for swaps mandated by the Dodd-Frank Act.

Features:

• Examination of the contribution of derivatives to the Financial Crisis and the public policy considerations underlying the Dodd-Frank Act
• Study of the Commodity Futures Trading Commission (CFTC) and its jurisdiction over most derivatives
• Basic economic overview of derivatives and their function and descriptions of futures, forwards, options and the most common interest rate, foreign exchange, commodity, credit, and equity swaps
• The law and regulation applying to CFTC registrants, including designated contract markets, derivatives clearing organizations, futures commission merchants, introducing brokers, floor brokers, commodity pool operators, commodity trading advisors, swap dealers, major swap participants, swap data repositories, and swap execution facilities
• Focus on commodities fraud, market manipulation and the CFTC’s enforcement authority, as enhanced by the Dodd-Frank Act
• Detailed description of the documentation of off-exchange derivatives and commonly-negotiated provisions
• Examination of the Bankruptcy Code’s treatment of derivatives
• Comparison of trading mechanics on traditional futures exchanges to trading mechanics on swap execution facilities, including with respect to custody of customer funds
• Discussions of prominent failures in the derivatives market, such as Peregrine Financial Corporation, MF Global and Lehman Brothers
• Comprehensive glossary of relevant terms