COVID-19 has significantly impaired the global economy. In the Global Economic Prospects Report of June 2020, the World Bank forecasted that the global GDP in 2020 will contract by 5.2%, creating the worst recession in 80 years. More than 90% of the global economies are contracting, a percentage higher than that of the Great Depression of 1930-32. While the US equity market has seen a modest recovery due to its alternative, the debt market, producing meager return rates, the outlook for the real economy is far from optimistic. In spite of expecting a rebound in the second half of 2020 and in 2021, researchers predict that it will be limited and that the prospect of a V-shaped recovery is hopeful at best.

Continue Reading COVID-19: Economic Consequences and Recovery Measures

The COVID-19 pandemic has brought new challenges for compliance departments, including a rise in market abuse risk as more staff members work from home. Lawyers in Mayer Brown’s Paris office offer insights on market manipulation risk for European banks in a May 13 article in S&P Global’s Market Intelligence publication. The article draws on Mayer

The staff of the Division of Investment Management (“Division”) of the US Securities and Exchange Commission (“SEC”) has published “FAQs” regarding relief for funds and advisers affected by COVID-19 (the “FAQs”).  The FAQs include, among others:

  • information about how to contact the Division with questions or concerns about COVID-19 related operational or compliance

On April 22, 2020, the US Securities and Exchange Commission’s Division of Investment Management (“Staff”) announced that it is extending the EDGAR filing window on April 29, 2020, from 5:30 p.m. to 10:00 p.m. EDT for registered investment company (“RIC”) and business development company (“BDC”) filings.  This extension was instituted to mitigate potential filing delays

On March 31, 2020, in an effort to continue to respond to the challenges brought about by the Covid-19 crisis, the Commodity Futures Trading Commission (CFTC) staff issued temporary relief that will permit certain US trading firms to serve their US customers from foreign affiliates. Many US futures commission merchants (FCM) are part of international financial service groups with global operations in various financial centers outside the United States, and the new relief will have the practical effect of allowing those non-US personnel to enter orders of US customers where certain conditions are satisfied.

The issuance of the relief marks a significant and helpful step. Recognizing the operational difficulties confronting numerous FCMs during this period, CFTC staff has taken an aggressive and well-advised step to help promote the efficiency of order execution.


Continue Reading CFTC COVID-19 Relief Allows Certain Foreign Brokers to Enter US Customer Orders

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The COVID-19 pandemic has raised a number of issues specific to public companies that file reports with the Securities and Exchange Commission. Among the issues impacted by COVID-19 that the speakers we will discuss in this webcast will be:

  • Risk factors and forward-looking information disclosures
  • Other SEC disclosure topics
  • Earnings releases, earnings

On March 27, 2020, the US Federal Trade Commission (FTC) announced that it would resume granting early terminations (ETs) of merger filings made under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act). The FTC previously said that it would not grant ET while its temporary e-filing program for HSR filings was in effect during the COVID-19 crisis. Whether ET is granted is an important deal-timing consideration; without it, filing parties must wait the entire 30-day waiting period prior to closing their transactions.

Continue Reading Federal Trade Commission Resumes Granting Early Terminations

As a result of market volatility related to the COVID-19 pandemic, many companies may be at risk of losing their status as well-known seasoned issuers (“WKSIs”) under the federal securities laws. Our blog post reviews the requirements for WKSI status.

Continue Reading on Mayer Brown’s Free Writings + Perspectives blog.

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If you wish

For public companies concerned about steep declines in their day-to-day market cap in this volatile environment and how that volatility may impact their status as a large accelerated, accelerated or non-accelerated (including a small reporting company) filer, our blog post includes a few reminders relating to the relevant determination dates.

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