Hedge funds partners Leigh Fraser (Boston) and Isabel Dische (New York) and counsel Molly Moore (Washington, D.C.) authored an article titled " Segregation of Initial Margin Posted in Connection with Uncleared Swaps," published April 19 on The Harvard Law School Forum on Corporate Governance and Financial Regulation blog. In the article, the authors discuss how swap dealers and their counterparties must take action as a result of the new rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Commodity Futures Trading Commission. They note that under these rules, swap dealers are required to notify their counterparties of their right to require segregation with a third-party custodian of any initial margin posted to the swap dealer in connection with uncleared swaps and to obtain the counterparties' elections to either require or not require the segregation.
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Originally published on The Harvard Law School Forum on Corporate Governance and Financial Regulation
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