Section 546(e) of the Bankruptcy Code is a safe harbor provision that establishes that a trustee or debtor-in-possession may not avoid a transfer “by or to... a financial institution.. in connection with a securities contract” other than under an intentional fraudulent conveyance theory. On December 19, 2019, the Second Circuit in Note Holders v.

The recent Supreme Court decision in Merit Management Group LP v. FTI Consulting, Inc. eliminated any circuit split or confusion over the language of the section 546(e) safe harbor.