FUTURES AND

DERIVATIVESOur Clients

Katten's Futures and Derivatives team advises domestic

and international banks and brokerage firms, fund

managers, trading advisors and proprietary trading firms.

We also represent domestic and foreign exchanges,

clearing organizations, and swap execution facilities.

Our Services

Our Futures and Derivatives practice encompasses

exchange-traded and over-the-counter (OTC) derivatives

across all asset classes and transaction types. We pride

ourselves on finding commercially sensible solutions to

client problems that are consistent with applicable law

and regulations, and conduct our practice with an

awareness of the time-sensitive and market-driven

nature of the issues our clients face.

Drawing on a wealth of experience with all types of

derivatives, we support clients in derivatives transactions

by providing comprehensive advice on product

structuring, implementation and documentation;

regulatory compliance; governmental and self-regulatory

organization investigations and enforcement actions;

contract termination, enforcement and recovery following

insolvency and other defaults; and resolution of disputes,

including formal mediation, arbitration and litigation.

Close cooperation with other practices enables the

Futures and Derivatives group to access the knowledge

and resources of attorneys focused on ERISA,

bankruptcy and cross-border work to fully serve our

clients' needs. As one of the few law firms with

significant experience in both exchange-traded and OTC

derivatives, Katten is uniquely qualified to help clients

respond to the regulatory challenges created by the

convergence of those markets resulting from the Dodd-

Frank Act and mandatory swap clearing.

Our approach to derivatives issues is practical, not

theoretical. Katten attorneys have worked in-house for a

wide range of industry regulators and participants, such

as the Commodity Futures Trading Commission (CFTC),

Securities and Exchange Commission (SEC),

RECOGNIZED BY

Chambers Global

o Capital Markets: Derivatives (USA) 2019,

2018

Chambers USA

o Capital Markets: Derivatives (Nationwide)

2019, 2018

The Legal 500 United Kingdom

o Corporate and Commercial – Financial

Services (Non-Contentious/Regulatory)

2019, 2017

o Finance – Derivatives and Structured

Products 2019, 2017

The Legal 500 United States

o Structured Finance – Derivatives and

Structured Products 2019

U.S. News – Best Lawyers® “Best Law Firms”

o Derivatives and Futures Law (National,

Chicago) 2019, 2018

Department of Justice (DOJ), New York Stock Exchange

(NYSE), and large national and international investment

banks. Katten serves as regulatory counsel to the

Futures Industry Association (FIA) and the lawyers in

this practice participate actively in industry and market

initiatives, including the documentation projects

sponsored by the International Swaps and Derivatives

Association (ISDA).

Our Experience

Defense of major financial institutions (both US and

non-US) against allegations of under-reporting or

misreporting. Katten's work includes technology

internal review, remediation, negotiation of relevant

settlement documents, and extensive work with

FINRA and the options exchanges.

Representation of a major global financial services

provider in an investigation by the CFTC regarding

trading of EFRPs. Katten submitted a Wells

response and additional documentation; through

several rounds of discussions with CFTC staff and

the acting director of enforcement, we successfully

settled the matter for a reduced fine and a

recordkeeping charge against a single corporate

entity.

Representation of a financial institution's

commodities trading unit regarding revenue put

transactions relating to the full capacity for 1,000+-

megawatt combined-cycle natural gas facilities to be

constructed in New York and Pennsylvania.

Counsel to a leading global investment banker with

regard to exchange-traded derivatives, OTC options

and related trading matters. Katten provides insight

and advice into complicated and novel regulations

affecting trading, responded to potential new trading

issues, offered real-time trading advice to avoid

future issues, and provides counsel after the fact

when a trading activity may be problematic.

Provision of ongoing regulatory advice to commodity

merchant and trading firms focused on the hedging

of physical commodities. Katten regularly counsels

clients on exchange-traded and OTC derivatives.

Provision of advice to a full-service brokerage and

investment banking firm regarding registration as a

floor trader and relevant CFTC rules.

Defense of a corporate investment bank against

allegations that it and other banks manipulated

LIBOR. Katten directs all aspects of the bank's

internal investigation and response to far-reaching

discovery requests, conducts presentations to

regulators, and manages the sweeping consolidated

litigation and related appeals.

Counsel to a corporate and investment bank on the

full range of issues related to exchange-traded

derivatives, including evolving exchange rules, block

trades, and exchange and futures-related positions

and position limits. Katten also advises the firm on

execution and clearance issues under US law

impacting its international affiliates.

Representation of one of the first swap execution

facilities and clearinghouses authorized by the

CFTC to trade and settle derivatives contracts with

digital currencies such as Bitcoin in obtaining both

its SEF and DCO licenses.

Representation of a State government on several

amendments and novations to swaps, including

negotiation of lower credit rating-termination

triggers for the State's interest-rate swap deals with

financial institutions.

Representation of a prop trading firm and its founder

in connection with a CFTC suit alleging that the

founder had engaged in "spoofing" and manipulated

various commodity futures markets. Katten

represented the clients in discovery, advised on trial

strategy and negotiated a settlement in principle with

the CFTC.

Counsel to an industry association with regard to the

regulation of exchange-traded derivatives markets

and market participants, with particular focus on

FCMs registered with the CFTC. Katten's

representation includes (1) preparing comment

“Their level of expertise in the futures market

is just terrific. They are knowledgeable about

the law, they have contacts with and insights

into the regulators, and have good insights

into what general market practices are, so

they give informed advice in all respects.”

—————

Chambers USA 2014

(Capital Markets: Derivatives)

letters with respect to proposed CFTC rules and

ESMA regulations; (2) assistance with lobbying

efforts before congressional committees; (3) drafting

industry-standard documents, such as the EMIR

Clearing Member Disclosure Statement for use by

FCMs whose clients trade on EU markets; and (4)

providing market education programs.

Representation of a global financial services firm in

an investigation by the CBOE, NFA and CFE

regarding allegedly manipulative trading of options

and futures on the CBOE and the CFE. The

investigation concerns the client's trading in several

complex financial products, including options and

futures related to the volatility of an underlying

exchange-traded fund. Katten handled all aspects of

the case, including analysis of issues and defenses,

correspondence with the regulators, document

production, witness preparation, testimony,

coordination of joint defense counsel for the client's

employees, and representation before the CBOE

Business Conduct Committee in an enforcement

action.

Representation of a British clearinghouse in

connection with its registration as a derivatives

clearing organization with the CFTC, in addition to

orders expanding the types of products for which the

client is able to provide clearing services to US

participants. Katten prepared amendments to the

client's Rulebook, Procedures and Default Rules to

permit qualifying clearing clients to elect to be

treated as "latent" clearing members. We also

provide assistance regarding CFTC requests, such

as to commingle cleared swaps customer funds and

foreign futures and options customer funds in the

cleared swaps customer accounts.

Representation of a British clearinghouse in

connection with preparing and submitting to the

CFTC a first-of-its-kind cross-border insolvency

opinion reconciling the customer protection

requirements under the US Commodity Exchange

Act and US Bankruptcy Code with the requirements

of EMIR. Katten also assisted the client with

preparation of a cross-border insolvency memo

relating to the offer of clearing services to US

clearing members in relation to securities, repos and

certain futures contracts.

Representation of a broker-dealer focused on

making markets in exchange-listed equity options

and futures. Katten handles day-to-day regulatory

questions as well as inquiries from regulators,

addressing issues relating to SEC regulations

concerning market-making, market access risk

controls, registration, short sales and disruptive

trading practices.

Representation of a multinational banking and

financial services company on a credit-linked note

issuance referencing broadly syndicated loans and

the structuring of a cutting-edge repo transaction to

finance the acquisition by a CLO manager of its US

risk-retention obligations.

Provision of registration and/or ongoing compliance

advice to nine entities (eight US, one non-US)

registered as swap dealers with the CFTC and FIA.

Provision of advice to numerous hedge funds

regarding swap issues.

Provision of advice to government pension plans

regarding swap issues.