Practice Areas & Industries: Sullivan & Cromwell LLP

Practice/Industry Group Overview

Sullivan & Cromwell's Commodities, Futures and Derivatives Group provides a full range of transactional, advisory and litigation services in connection with the structuring, offering and trading of commodity and derivative products of all types. We are extensively and integrally involved in all aspects of the commodities and derivatives businesses. We advise on the development of new products, the structuring and implementation of complex transactions and the obtaining of necessary regulatory relief. Our coordinated practice enables insights and ideas from one area to cross-fertilize other areas. The following are examples of the principal types of matters handled by our lawyers:

• Advice on the development of new technologies, financial indices, electronic trading systems, exchanges and clearing houses in connection with the trading of futures, options and OTC derivatives, including advice on structuring, regulatory, intellectual property and other issues and transactional representation
• Regulatory and transactional advice regarding derivatives, including advice on structuring and documenting transactions and advice on securities, commodities, banking, insurance, cross-border, margin, insolvency and other issues
• Regulatory and transactional advice to hedge fund groups, including structuring and development of advisory businesses and funds
• Compliance and investigatory reviews of commodities and derivatives businesses, including training and development of internal policies and procedures to govern businesses and establishment of structured product review committees to comply with regulatory guidance
• Policy, legislative and regulatory comment and advice relating to commodities, securities, banking and international law issues affecting commodities and derivatives
• Advice to banks, investment banks, hedge funds, utilities and others on trading issues including the establishment of trading ventures involving commodities, securities, currencies and derivatives
• Coordinating global advice regarding the status of trading, advisory and information systems under the laws of multiple jurisdictions.

Sullivan & Cromwell has been involved in most of the major transactions in the commodities and derivatives fields in recent years. These have included the following:

• Representation of ICE in its acquisition of the New York Board of Trade
• Representation of Citadel Group in connection with its acquisition of the energy trading book of Amaranth LLC
• Representation of major financial institutions in the development of public commodity indices, including representation of Prudential in connection with the Bache Commodity Index and representation of Goldman Sachs, AIG, UBS and Merrill Lynch in connection with the development of proprietary commodity indices
• Representation of Goldman Sachs in connection with the development of derivative auction systems in conjunction with the Chicago Mercantile Exchange and the New York Mercantile Exchange
• Development of the Merrill Lynch "TRAKRS" product
• Structuring, negotiation and documentation of joint ventures regarding electronic trading platforms, clearing operations and other services, including the organization of ICE and the clearing relationship between ICE and the London Clearing House, and the development of facilities to provide clearing services to the foreign exchange and other markets
• Creation of several futures exchanges, including the CBOE Futures Exchange, the Chicago Climate Exchange, OneChicago and the Cantor Exchange
• Development of compliance policies and procedures for registered entities and unregistered trading companies, and provision of training sessions for employees.

Practice Contacts

David J. Gilberg
New York
P +1-212-558-4680
F +1-212-558-3588
gilbergd@sullcrom.com

Kenneth M. Raisler
New York
P +1-212-558-4675
F +1-212-558-3588
raislerk@sullcrom.com