Recent "best practices" guidance issued by the New York State Insurance Department, which imposes more stringent requirements for financial guaranty insurance (FGI) companies, could have far-reaching consequences on the credit default swap (CDS) market. The Circular's new rules may extend to reach non-FGI protection sellers in the CDS market. And, as other regulators focus on the CDS market, a patchwork of regulation may be created that could cause further confusion and harm the markets. Here are details on New York State's new Insurance Department regulation of FGI’s involvement in the CDS market and potential impact on the market as a whole.

If you would like to know more about any of the topics mentioned above, please contact the White & Case lawyer with whom you regularly discuss securities matters or any of the following lawyers:

Ian Cuillerier
Partner, New York
+ 1 212 819 8713

Steven Ross
Counsel, New York
+ 1 212 819 8901

David Barwise
Partner, London
+ 44 20 7532 1402
 

This Securities Alert is provided for your convenience and does not constitute legal advice. It is prepared for the general information of our clients and other interested persons. This Alert should not be acted upon in any specific situation without appropriate legal advice, and it may include links to websites other than the White & Case website. White & Case LLP has no responsibility for any websites other than its own, and does not endorse the information, content, presentation or accuracy, or make any warranty, express or implied, regarding any other website.

This Securities Alert is protected by copyright. Material appearing herein may be reproduced or translated with appropriate credit.

© 2008 White & Case LLP