Category: Documentation and Transactions

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FINRA Publishes Proposed Rule Change to Delay Implementation of TBA Margining Until June 25, 2018

On September 19, 2017, the Financial Industry Regulatory Authority (“FINRA”) published a proposed rule change (available here) to delay implementation of certain margin requirements in respect of what are referred to as “Covered Agency Transactions,” including To Be Announced (“TBA”) transactions and other specified delayed delivery transactions involving mortgage-backed securities. The delay will move the … Continue Reading

Defending Bankruptcy Exemptions for Repos and Sec Lending

One great thing about a new Congress is that bills pending at the end of the prior Congress must be reintroduced. This wipes the slate clean of problematic proposals and reduces the risk of something slipping through without sufficient debate. For example, the proposed Bankruptcy Fairness Act of 2016 (BFA) expired with the 114th Congress. … Continue Reading

FINRA Proposes Amendments to Its TBA Margin Proposal: Much Ado About Nothing or Meaningful Amendments?

On January 14, 2016, the Securities and Exchange Commission (“SEC”) solicited comments on a proposal by Financial Industry Regulatory Authority, Inc. (“FINRA”) to revise its proposed changes to FINRA Rule 4210.   If implemented, FINRA’s proposal will result in the margining of certain trades in the To Be Announced (“TBA”) market.  This posting will provide a summary of FINRA’s proposed amendments, … Continue Reading

Dealing with “Deemed Zero Rates” in Loan Agreements and Related Interest Rate Swap Documentation

Increasingly, some banks have been including a provision in their commercial loan agreements that deems the variable interest rate on a loan to be zero, if the reference rate on the loan (for example, LIBOR) goes negative.  This type of a provision is sometimes referred to as a “deemed zero” clause.  This blog posting looks … Continue Reading
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