Derivatives

On the basis of statements made by regulators so far, the market expects that panel banks will no longer be compelled to make submissions for the determination of the London Interbank Offered Rates (LIBOR) as of the end of 2021 and that LIBOR will cease to be published in its current form as a result. This gives rise to the questions what alternative interest rate benchmarks may be used instead of LIBOR rates in the derivatives market and how to proceed with regard to transactions referencing LIBOR rates that have a maturity beyond the end of LIBOR. By Olivier Favre…

Actively Managed Certificates (AMCs) have become more and more popular in recent years. Unlike most other structured products, AMCs have special features which enable the active selection and adjustment of the components of their underlying strategy. The fast growth of the AMC market emphasizes the importance of the applicable regulatory and contractual framework. In addition to the general rules that apply to all structured products, AMCs are subject to specific regulatory and contractual requirements. This article provides some insights on these characteristics. By Luca Bianchi (Reference: CapLaw-2015-19)

By Martin Hess (Reference: CapLaw-2013-29)

In 2009, the G-20 leaders agreed that all standardized over-the-counter (OTC) derivative contracts should be traded on exchanges and cleared through central counterparties by the end of 2012. This article provides an update on the pending initiatives to regulate OTC derivatives in the US, in Switzerland and in the EU and gives a more detailed overview of the recently adopted European Regulation on OTC derivatives, central counterparties and trade repositories (EMIR).

Introducing P.R.I.M.E. Finance – The Hague Based Dispute Resolution Facility for Financial Market Disputes There has been growing interest in arbitration in the financial markets, and no doubt both concerns about litigating financial market disputes in many jurisdictions, particularly emerging market jurisdictions, and certain enforcement advantages of arbitration may have contributed. P.R.I.M.E. Finance stands for a Panel of Recognised International Market Experts in Finance, and its list of experts currently includes a group of nearly 100 senior legal and financial market figures drawn from around the world and representing, collectively, more than 2,500 years of relevant experience. Conceived against the…

The financial crisis has brought the derivatives to the forefront of regulatory attention. In 2010, as a response, the US enacted the Dodd-Frank Act which provides for new Federal regulation of the swaps market and is expected to make fundamental changes in the way the swaps market operates. Many sections of the Dodd-Frank Act require significant rulemaking by the SEC and CFTC. This article provides an update on recent developments and current status of such rulemaking.

The financial crisis has brought derivatives to the forefront of regulatory attention. In 2009, the G-20 leaders agreed that all standardized over-the-counter (OTC) derivative contracts should be traded on exchanges and cleared through central counterparties by the end of 2012. In CapLaw-2010-47, we gave an overview of the pending initiatives to regulate OTC derivatives in the EU. Since then, some significant developments have occurred. This article provides an update on the pending initiatives to regulate OTC derivatives in the EU.