Willa Bruckner was quoted in a June 9 article in Dow Jones Hedge Fund Trades that discusses the closely watched case between CSX Corp. and hedge funds The Children’s Investment Fund Management (TCI) and 3G Capital Partners. The case is being followed by the financial community because it is thought that a ruling in favor of CSX could affect the way derivatives are reported and impact the growth of the $10 trillion equity derivatives markets. “A ruling in favor of the plaintiff can have pretty far-reaching implications,” pointed out Bruckner. “People who are engaging in equity derivatives now will have to pay attention to an aspect of the securities law that heretofore they didn’t.”
Bruckner went on to note that the Commodities Future Modernization Act of 2000 draws a clear distinction between security-based swap agreements and securities. A ruling in favor of CSX, she says, could blur that distinction.