Blank Rome routinely counsels banks and other financial institutions (“FIs”) on transactional and regulatory matters related to derivatives. Representative engagements include:
- Drafting, reviewing, and negotiating transactional documents to allow borrowers to hedge interest rate risks related to a variable rate loans or other financing arrangements offered by banks and other FIs.
- Structuring foreign exchange derivatives and other similar transactions to allow the customers of a bank or other FI to hedge commercial and operational risks.
- Preparing and negotiating bespoke documents to permit a bank or FI to act as a commodity hedge provider in connection with a wide range of financing transactions, including those in which provider may not also be a lender.
- Advising FIs on the application of regulatory capital and related requirements to over-the-counter and cleared derivatives transactions.
- Assisting non-swap dealer FIs with derivatives-related compliance policies and procedures, including hedging and risk management policies.
- Analyzing Dodd-Frank requirements applicable to the offer of over-the-counter derivatives to customers, including swap recordkeeping and reporting requirements.
- Counseling FIs on the novation of swaps, issues related to risk participation agreements, the early termination of swaps in a restructuring or workout scenario, and the application of bankruptcy and insolvency laws to over-the-counter derivative transactions.
How We Can Help
Our clients range from large, multinational FIs to regional and smaller banks that are not required to register as swap dealers. We tailor our advice to the particular needs and risk profile of the regulated financial institution, instead taking a “one-size-fits-all” approach to the provision of transactional and regulatory counsel.
We strive to provide our clients with access to deep experience across a wide range of asset classes and transactions, while delivering services in a timely and efficient manner.
