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We advised on the high-profile launch of Eric Tavel’s Katten represented Hartford Funds in the acquisition of
Masa Capital LLC, a quantitative trading fund backed by Lattice Strategies, an investment management firm and
multibillion-dollar hedge fund Schonfeld Strategic Advisors. provider of strategic beta exchange-traded funds (ETF). This
Our team represented Masa in the $100 million-dollar seed acquisition marks Hartford Funds’ expansion into the ETF
investment and advised on all aspects of Masa’s formation space, adding robust investment management and product
and corporate structure, including aspects unique to the development capabilities to its existing portfolio of actively
quantitative trading industry. managed mutual funds.
Katten represented Mercury Capital Advisors in developing We advised a major and rapidly growing law-focused invest-
Mercury iFunds™, an online broker-dealer platform for the ment manager in its sale to a rival litigation finance and fund-
marketing and sale of alternative investments. Our team ing firm for $160 million. As noted by The New York Times, the
advised on platform design; counselled on the complex merger combines two former rivals in the sector, with an
interplay of the myriad of securities laws, including anti- estimated $1.2 billion in investments and commitments.
money laundering and know-your-customer obligations
and Regulation D; advised on tax, insurance and intellectual TRANSACTIONS
property laws pertinent to operating an online broker-dealer
engaged in these activities; and on-boarded significant
hedge fund and other managers to the platform.
EARLY STAGE
Full spectrum of services in the alternative investment industry
TRADING & REGULATORY MATTERS ENFORCEMENT & LITIGATION
We advise participants across the industry and around the In one of the most closely watched cases of the year, we
globe on various trading issues and regulations in the United litigated against the CFTC on behalf of a proprietary trading
States and abroad, including new rules and regulations firm in the first “spoofing” case litigated by the CFTC. The
promulgated or proposed by the CFTC, the SEC and FINRA firm and founder were sued by the agency, alleging that they
as well as key initiatives in the European Union such as the had engaged in “spoofing” and manipulated various com-
Market Abuse Regulation (MAR) and Markets in Financial modity futures markets. We represented the firm and its
Instruments Directive II (MiFID II) and developments sur- founder on all aspects of the litigation, ultimately negotiating
rounding Brexit. We have been working closely with clients to a favorable settlement with the CFTC.
assess the potential impact of these new regulations and
exploring alternative means of doing business in the UK and In a rare evidentiary hearing before a panel of the Chicago
EU. For example, on behalf of our clients we have been ex- Mercantile Exchange (CME) Business Conduct Committee,
ploring the potential need for the establishment of a regulated Katten represented a proprietary trading firm against
entity and personnel somewhere in the EU and have been charges that one of its algorithmic trading strategies resulted
comparing different EU jurisdictions from a tax and regulatory in wash trades in violation of CME rules and succeeded in
perspective, including active and in-person discussions with having all charges against our client dismissed with no appeal
the local regulators. We also have been advising clients on of the panel’s decision.
alternatives to the UK as a trading jurisdiction in the event
that there is a severance of the cross-border passport right. 2016 ANNUAL REVIEW | 3
