Over-the-counter (OTC) derivatives are key elements in many of our financial markets. The Dodd-Frank Act and other regulations have changed and are continuing to change how these important instruments are regulated and transacted. This program will introduce you to both the instruments and their current environment. 

A derivative is a financial instrument that allocates the risks and price exposures associated with a designated reference asset or entity between the parties thereto. Derivatives can provide price exposure or price insulation to changes in the price or level of an open-ended range of assets or baskets of assets, including indices, stocks, interest rates, currencies, bonds, commodities, insured risks, credit risks, investment funds, property, the weather and more. Derivatives are used in an infinite variety of ways by commercial, charitable, educational and governmental entities to manage the commercial and financial risks they confront. OTC derivatives have been bilaterally traded for many years. They are now becoming subject, in some cases, to required clearing and exchange-type trading. An understanding of the current regulations and of the characteristics, documentation and regulation of these instruments is the first step to effective lawyering.

At this program, our distinguished faculty will explain what OTC derivatives have been, what they are becoming and how they are documented. The faculty will also provide an overview of the regulatory framework for OTC derivatives and OTC derivatives market participants and explain how the regulatory framework is affecting these markets and market participants.

Partner Liz Davis will join the panel, "The Regulatory Fundamentals of Swaps."  This session will provide an overview of the federal regulation of swaps in the United States. After completing this session participants will be able to:

• Describe and understand the reason for regulated statuses: eligible contract participants, swap dealers, major swap participants and commodity pools
• Understand the roles of regulated "utilities" and service providers: clearinghouses, futures commission merchants, swap execution facilities, swap data repositories
• Spot extraterritorial issues