USA, Shearman & Sterling LLP updates

Banking & Financial Services

Contributed by Shearman & Sterling LLP
CFTC approves final rule on post-trade name give-up on swap execution
  • USA
  • 06 October 2020

The Commodity Futures Trading Commission (CFTC) has adopted a final rule to prohibit the controversial practice of post-trade name give-up for swaps that are executed anonymously through a swap execution facility and are intended to be cleared. Although the CFTC rejected requests for various exceptions to the prohibition, it did include an exception for package transactions which include a component transaction that is not a swap intended to be cleared.

SEC identifies LIBOR preparedness as an examination priority
  • USA
  • 25 August 2020

The Securities Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) recently announced the details of an examination initiative specifically focused on London Interbank Offered Rate (LIBOR) preparedness. The OCIE has previously identified LIBOR preparedness of registrants as a key examination priority for 2020, but the latest announcement offers specific insights into what information examiners will be seeking from registrants.

ARRC announces best practices for completing LIBOR transition
  • USA
  • 14 July 2020

The Alternative Reference Rates Committee (ARRC) recently published best practices for completing the financial industry's transition away from the US dollar London Interbank Offered Rate (USD LIBOR). With 19 months remaining before the anticipated cessation of USD LIBOR at the end of 2021, the ARRC's recommendations should provide market participants with further guidance as they continue to prepare for the transition.

Debt buyback and liability management considerations
  • USA
  • 19 May 2020

As the markets continue to react to the COVID-19 pandemic, the trading prices of many corporate loans and bonds have fallen dramatically. As a result, many companies (or their private equity sponsors) are looking at repurchasing their debt at a discount. In addition, many companies are concerned that the impact of the COVID-19 pandemic will result in covenant breaches or other defaults and are engaging in discussions with their lenders and investors to obtain needed modifications to their debt agreements.

ARRC announces 2020 objectives for facilitating USD LIBOR transition
  • USA
  • 13 May 2020

The Alternative Reference Rates Committee (ARRC) recently unveiled its 2020 objectives for facilitating the industry's transition away from the US dollar London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate. These goals and projected timelines build on the ARRC's previous transitioning work and aim to account for both the impact of COVID-19 on financial markets and the expectation that LIBOR will still be discontinued at the end of 2021.


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