February 05, 2020
Cadwalader partner Dorothy Mehta chaired a panel about derivatives market intermediaries and advisors, and current approaches being taken by the CFTC’s Division of Swap Dealer and Intermediary Oversight ("DSIO") and the National Futures Association (NFA) to oversee them, as part of the ABA’s recent annual meeting of its Derivatives and Futures Law Committee.
The panelists were Josh Sterling, Director of DSIO; Carol Wooding, Senior Vice President, General Counsel and Secretary of the NFA; Maria Chiodi, a Managing Director in the General Counsel department at Credit Suisse Securities (USA); Ruth Epstein, a partner at Stradley Ronon; Peter Malyshev, a partner at Reed Smith; David Mitchell, a partner at Fried Frank; and Caroline Pham, Deputy Head of Global Regulatory Affairs at Citigroup.
Mehta moderated their conversation about recent developments at DSIO and the NFA and how various intermediaries – such as commodity pool operators, commodity trading advisors, futures commission merchants, introducing brokers, major swap participants, retail foreign exchange dealers, and swap dealers – are navigating them.
More specifically, the group delved into the priorities of DSIO and its focus on rulemaking, as well as relevant enforcement actions. A pragmatic approach to regulation is the focus of both DSIO and the NFA.
“Our panel surfaced a real-world view into DSIO’s current regulatory focus, its coordination with the NFA and also how it’s regarding registrants’ own approaches to ensure compliance,” Mehta said. “The discussion also shed light on the important role of asset managers in these markets and how current regulation could be potentially simplified for asset managers.”
Mehta is a partner in the firm’s Financial Services Group and a leader in its Investment Management Practice. Her client base includes U.S. and non-U.S. investment advisers to hedge funds, private equity funds and managed accounts, commodity pool operators, commodity trading advisors and family offices. Mehta has extensive experience in the structuring, formation and operation (domestically and on a cross-border basis) of a variety of alternative investments products. She regularly advises clients on registration and related compliance requirements of the SEC and CFTC (including with the rules and by-laws of the NFA), assisting with structuring considerations, compliance program reviews, audits and no action letter requests.