Those active in the derivatives market may be familiar with the Bankruptcy Code’s “safe harbor” provisions. These provisions are intended to protect derivatives participants from some of the debtor-friendly effects of bankruptcy, all in the name of ensuring market stability if a large derivatives market firm were to fail. The safe harbor provisions have been put to the test in the Lehman bankruptcy cases, with several market-affecting decisions issued over the last four years. Last week, the bankruptcy court issued another important decision addressing the safe harbors. See Michigan State Housing Development Authority v. Lehman Brothers Derivative Prods. Inc., et Continue Reading