City of Chicago

Publications

October 01, 2018 : Institutionally Managing Your Trading Relationships

INSTITUTIONALLY MANAGING YOUR TRADING RELATIONSHIPS Previously published in Wells Fargo Prime Service’s Industry and Regulatory Updates, October 2018 edition Is it really that important to spend time and money negotiating the terms of my trading and financing agreements? Why? It’s really all about relationships, isn’t it? Are some terms more important than others? On a…

February 01, 2016 : Prime Brokerage – Clients Right to the Return of their Assets 02-2016

CUSTOMER’S RIGHT TO THE RETURN OF ASSETS HELD IN PRIME BROKERAGE ACCOUNTS Due to recent market events, I have been fielding very similar calls from clients and others regarding a prime brokerage customer’s right to the return of their securities and cash held in their prime brokerage accounts. They want to know if the PB must…

September 19, 2013 : ISDA Publishes DF Protocol Extension Agreement Linking Dodd-Frank Protocol to EMIR Protocol

ISDA PUBLISHES DF PROTOCOL EXTENSION AGREEMENT LINKING DODD-FRANK PROTOCOL TO EMIR PROTOCOL The European Market Infrastructure Regulation (“EMIR”) is a comprehensive European Union regulatory regime created to increase the stability and oversight of European OTC derivatives trading. EMIR applies generally to European entities trading in OTC derivatives, including trading activities with non-European counterparties. As part of…

June 03, 2010 : Devi’s Corner: ‘Institutional’ When AUM is Less Than $500M

DEVI’S CORNER: ‘INSTITUTIONAL’ WHEN AUM IS LESS THAN $500M The buzzword when investors are conducting due diligence on a hedge fund today is “Institutional.” Funds strive to appear institutional when they present their back office operations to investors. Investors meet with hedge funds to determine if the manager is institutional enough to entrust with their…

May 19, 2010 : Devi’s Corner: When the Banks Won’t Call You Back – NAV Triggers’ Effects On Hedge Funds

DEVI’S CORNER: WHEN THE BANKS WON’T CALL YOU BACK – NAV TRIGGERS’ EFFECTS ON HEDGE FUNDS Between 2007 and 2009, many hedge funds declined in size due to investor redemptions and/or performance declines. These same hedge funds trade derivative agreements under an ISDA Master Agreement that typically contain provisions defined as Additional Terminations Events (”ATE”) which…

January 31, 2005 : The Fund Adviser – Column 1 Know: Your ISDA Agreement

THE FUND ADVISOR – COLUMN 1: KNOW YOUR ISDA AGREEMENT The ISDA Master Agreement is not just a form. This is the first installment of the Fund Adviser, a column that will address legal issues commonly faced by hedge funds. Prominent among those issues are agreements with other parties. When effecting various trading strategies, a…

December 20, 2004 : The Credit and Legal Risks of Entering into an ISDA Master Agreement

THE CREDIT AND LEGAL RISKS OF ENTERING INTO AN ISDA MASTER AGREEMENT When a hedge fund decides to enter into derivatives, the first hurdle is a large stack of documents that must be signed with each trading counterparty. This stack will usually include an ISDA Master Agreement published by the International Swaps and Derivatives Association. The…

December 01, 2004 : Derivatives: Key Risks in Derivatives Accounting and Risk Management: Key Concepts and the impact of IAS 39 23 (Hyun Song Shin, ed. Risk Books, 2004)

Available upon request

August 01, 2003 : ISDA Publishes New Master Agreement, Banking & Financial Services Policy Report, August 2003, Vol. 22, Number 8, S-7.

Available upon request