# kaal:claim:1765901-011

**Claim.** The economic reality of swap agreements does not justify fixing the location of the transaction in every case solely by reference to the market where the reference security trades, even though Judge Baer was right that the Porsche swaps were not U.S. transactions.

**Type.** failure  **Support.** argued

**Holds when.**

- privately negotiated swap agreements
- application of Morrison to derivatives

**Source quote.**

> Judge Baer was right that these swap agreements were not transactions in the United States, but the "economic reality" of swap agree- ments does not support fixing a location for the transaction in every case based solely on the market for the reference security.

**From.** Kaal and Painter, *The Aftermath of Morrison v. National Australia Bank and Elliott Associates v. Porsche* (2011), II. Open Questions After Morrison; 3. When Does a Private Transaction Take Place in the U.S.?, page 13

**Cite as.** Kaal and Painter, The Aftermath of Morrison v. National Australia Bank and Elliott Associates v. Porsche (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1765901

**Verify.** sha256 of source PDF `7b08b8a15f7d72b4eeed41be2d17c20428cb4727269077a6575c5d22e31ecdc5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Painter%20-%202011%20-%20The%20Aftermath%20of%20Morrison%20v.%20National%20Australia%20Bank%20and%20Elliott%20Associates%20v.%20Porsche.pdf

**Failure mode.** reference-security-only-location-test  (family: other)

**Topics.** economics

**Keywords.** swap-agreements, economic-reality-test, transaction-location, derivatives

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