Hot Topics in Derivatives Regulation for Investment Managers using Commodity Interests (Futures, Options and Swaps)

An increasing number of financial firms (including hedge funds, private equity funds, mutual funds, fund-of-funds, real estate funds, endowments, foundations, family offices, insurance companies, operating companies and investment advisers) use commodity interests (futures, options and swaps) in connection with their business activities. Doing so, whether for speculative or hedging purposes, may result in the firm becoming subject to regulation by the Commodity Futures Trading Commission, the National Futures Association and/or the applicable derivatives Exchange. This area is difficult to navigate because much of it is not intuitive and if interpretations are memorialized in writing, they may appear in separate places that need to be pieced together. Traps for the unwary abound.

This program, taught by Deborah Monson, Partner, and Jeremy Liabo, Associate at Ropes & Gray, will explore hot topics for firms using commodity interests under CFTC, NFA and Exchange regulations, and focus on the regulatory framework, recent trends, and impending regulatory actions and focuses.

Learning Objectives:

1. Examine the regulatory framework for commodity interests
2. Identify common traps for unwary market participants and their attorneys
3. Explore recent enforcement trends, and discuss the future of commodities regulation