2011 Awards for Excellence

Article Type:2011 Awards for Excellence From:Journal of Investment Compliance, Volume 13, Issue 1

The following article was selected for this year's Outstanding Paper Award for Journal of Investment Compliance

"ABCs of ISDA agreements: advising the investor''

Robert A. RobertsonPartner in the Financial Services Group of Dechert LLP in Orange County, Irvine, California, USA

Gerardo Perez-GiustiAssociate in the Financial Services Group of Dechert LLP in Orange County, Irvine, California, USA

Purpose -- The purpose of this paper is to provide an introduction to benefits of using over-the-counter (OTC) derivatives when implementing an investment strategy. The paper aims to examine the basic legal structure of OTC derivative transactions and the International Swaps and Derivatives Association(ISDA) agreements used to document such transactions. The paper also aims to offer advice to institutional investors on steps they can take during the negotiation of ISDA agreements to reduce associated counterparty, termination and liquidity risk.Design/methodology/approach -- The paper outlines the typical structure of OTC derivative trades; summarizes the documents used to establish a trading relationship, and outlines key considerations for institutional investors during the negotiation of ISDA agreements.Findings-- An institutional investor should carefully review and negotiate ISDA documents to properly implement OTC derivative trades that conform to the investor's overall business operations and investment strategy.Practical implications -- While achieving the benefits of OTC derivative trades, an institutional investor also can negotiate agreements to reduce risks associated with these transactions.Originality/value -- The paper provides practical guidance from experienced securities and derivatives lawyers.Keywords Investments, Derivative markets, Securities, Investorswww.emeraldinsight.com/10.1108/15285811011056321This article originally appeared in Volume 11 Number 2, 2010, pp. 4-15,Journal of Investment Compliance

The following article was selected for this year's Highly Commended Award

"FinCEN and regulators issue joint guidance on obtaining beneficial ownership information, potentially expanding certain financial institutions' USA PATRIOT Act obligations''

Betty Santangelo

Amber Stokes

This article originally appeared in Volume 11 Number 4, 2010, Journal of Investment Compliance