A “How to Guide” to Basic Derivatives, Swaps Clearing & Structured Products

Originally held on Friday, January 23, 2015 | 9:00 a.m. – 1:00 p.m.

 

N. Adele Hogan

PROGRAM CHAIR
N. Adele Hogan

Hogan Law Associates PLLC


 

  • This course will enable both in-house and outside counsel to expand their skills and be more valuable to their clients by covering the why, what, when, where and how of derivatives.  Derivatives are used by most large public and many private companies, in part to manage risk. This basic course will cover how the International Swaps Dealer Agreements (“ISDA”) and Credit Support Agreements (“CSAs”) work; how to avoid common, costly mistakes and unintended consequences when negotiating ISDA contracts; and understanding the differences among the three contract types. One hour of ethics credit related to compliance with new derivatives and structured products regulations will also be available.

    Live Program (includes download of materials):

  • Daniel P. Budofsky, Morgan Lewis & Bockius LLP

    Lucy W. Farr, Davis Polk & Wardwell LLP

    Ilene Froom, Jones Day

    Brian Korn, Pepper Hamilton LLP

    Ellen P. Pesch, Sidley Austin LLP

    James Schwartz, Morrison & Foerster

    Alice Yurke, Alston & Bird LLP


  • 9:00 – 10:00 a.m. Basic Derivatives and Structured Products

    • Why and when do companies use derivatives?
    • How the ISDA contracts actually work
    • How to avoid common, costly mistakes and unintended consequences when negotiating ISDA contracts
    • Selected differences related to the five classes of underlying assets: interest rates (largest class), foreign exchange, equity, credit and commodities
    • Securities law issues
    • Structured products linked to common indices, such as the S&P, Russell 2000, individual company stocks and foreign indices

      Ilene Froom & Alice Yurke

      10:00 – 10:45 a.m. Key Considerations in Derivatives and Structured Products and Collateral

      • Collateral posting and protection issues
      • Bankruptcy and credit downgrade considerations
      • Understanding netting of exposures, risk exposure, valuation and risk: notional values, counterparty risk, pricing and leverage
      • Use of derivatives in M&A
      • Tax implications of various derivatives and structured notes

        Lucy Farr, Ilene Froom & Alice Yurke

        10:45 – 11:00 a.m. Break

        11:00 – 12:00 p.m. Derivatives and Considerations Related to New Regulations

        • What are the roles of the Securities Exchange Commission (“SEC”) and Commodities Futures Trading Commission (“CFTC”)
        • Working with multiple regulators
        • Derivatives clearing requirements of the Dodd Frank Act – reporting, compliance and unintended consequences
        • How to keep up with fast-paced regulatory changes in the derivatives and clearing area

          Daniel Budofsky, Ellen Pesch & James Schwartz 

          12:00 – 1:00 p.m. Ethics Related to New Regulations of Swaps Clearing and Structured Products

          • Ethical implications of understanding, implementing, and advising business people about new, complex regulations, including
            • Bilateral swaps vs. centralized clearing
            • Types of OTC derivatives—interest rate swaps vs. credit default swaps
            • Classification of dealers, major swap participants, and end users
            • Clearing houses and central counterparties
            • Eligible over-the-counter transactions
            • Ethical rules related
          • Ethical rules related to the organization as a client, competence, diligence, and conflicts of interest

          Adele Hogan & Brian Korn


        • This program provides 4.0 credits total: 3.0 in professional practice & 1.0 in ethics for the New York & New Jersey MCLE requirements. California & Pennsylvania credit differs as it is based on a 60-minute credit hour. The live program provided transitional credit to newly admitted attorneys; the recording does not provide transitional credit.

        • Save $$ on DVDs & CDs
          *DVDs $239 Member/$329 Nonmember

          *CDs $179 Member/$255 Nonmember

          *Materials Only (no CLE credit):$99 Member/$129 Nonmember

          * New York residents will be charged the New York sales tax for all audio visual purchases.


        • Can’t make it to the program in person?  Now you can attend this program from your office or home.  Register and view by clicking on the Casemaker or WestLegalEdcenter logo below:

          CasemakerWestlegaledcenter

        • Sponsoring Association Committees: Financial Reporting, Michael R. Young, Chair; Futures & Derivatives Regulation, Thomas V. D’Ambrosio, Chair; Mergers, Acquisitions & Corporate Control, Robert B. Schumer, Chair; Securities Regulation, Sandra Flow, Chair

          Sponsorship Opportunities are Available! Please Contact: 
          Ann Rappleye, Director, City Bar Center for CLE | (212) 382-6606 | ARappleye@nycbar.org or
          ____________________________________________________________________________________________
          Darianne De Leon, Program & Sponsorship Coordinator, City Bar Center for CLE | (212) 382-6731 | ddeleon@nycbar.org