Menu
How Will Section 546(e) Apply to Public Securities Transactions in Wake of Merit Management?
Caplin & Drysdale

How Will Section 546(e) Apply to Public Securities Transactions in Wake of Merit Management?

Date: 5/25/2018

The Supreme Court's decision in Merit Management construes Section 546(e) of the Bankruptcy Code (11 USC § 546(e)) more narrowly than most lower courts have done before.(1) Often referred to as the securities 'safe harbour', this provision prevents a bankruptcy trustee from unwinding settlement payments or other transfers made in connection with securities contracts if the payments or transfers were "made by or to (or for the benefit of)" certain kinds of market participant, including any stockbroker or financial institution.(2)

Trevor W. Swett authored the article "How Will Section 546(e) Apply to Public Securities Transactions in Wake of Merit Management?" for the May 25, 2018 issue of Insolvency & Restructuring - USA, a newsletter for the International Law Office. For the complete article, please click on the link above to view a PDF.

Related Professionals

Related Practices

View our non-mobile site Menu