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

Wednesday, May 3, 2017 | 9:00 am – 1:00 pm



N. Adele Hogan

Program Chair
N. Adele Hogan
Deutsche Bank

  • 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 & Webcast: $239 Member | $339 Nonmember

  • Daniel N. Budofsky
    Pillsbury Winthrop Shaw Pittman LLP

    Lucy W. Farr
    Davis Polk & Wardwell LLP

    Ilene Froom
    Reed Smith LLP

    David Gilberg
    Sullivan & Cromwell LLP

    Stephen R. Kruft
    SVP & Associate GC
    HSBC Securities (USA) Inc.

    Andrea Lowenthal
    Head of Legal, ANZ America | International & Institutional Legal Group
    Australia and New Zealand Banking Group Limited

    Jennifer S. Myers
    Consulting Attorney
    Deutsche Bank  AG

    Anna Pinedo
    Morrison Foerster LLP

    Scott M. Reinhart
    Cleary Gottlieb Steen & Hamilton LLP

    Alice Yurke
    Alston & Bird LLP

  • 9:00 am – 10:00 am 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, Scott Reinhart, Alice Yurke

    10:00 am – 10:45 am Key Considerations in Derivatives and Structured Products and Collateral

    • Regulatory margin requirements
    • 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 an structured notes

    Lucy Farr, Anna Pindeo

    10:45 am – 11:00 am Break
    11:00 am – 12:00 pm Derivatives and Considerations Related to New Regulations

    • What are the roles of the Securities and 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, David Gilberg, Jennifer Myers

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

    • Ethical implications of understanding, implementing, and advising business people abut 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

    Norm Champ, Ilene Froom, Steven Kruft, Andrea Lowenthal


  • NY: 4.0 total: 3.0 professional practice, 1.0 ethics
    NJ: 4.5 total: 3.3 general, 1.2 ethics
    CA: 4.0 total: 3.0 general, 1.0 ethics
    PA: 3.5 total: 2.5 general, 1.0 ethics

  • Sponsoring Association Committees:
    Compliance | Michael McMaster, Chair
    Financial Reporting | David S. Huntington, Chair
    Futures & Derivatives Regulation | Robert M. McLaughlin, Chair;
    Mergers, Acquisitions & Corporate Control | Alexandra D. Korry, Chair
    Securities Regulation | Marc Rossell, Chair

    Sponsorship Opportunities are Available! Please Contact:
    Maricela Alfonso | (212) 382-6619 | malfonso@nycbar.org