Crypto is booming again. Are you a bull? In which case you might like to purchase a derivative to gain a leveraged long exposure (a call option or long forward/future). Are you a bear? In which case you might like to purchase a derivative to hedge your downside (a put option or short forward/future). All

In Banca Nazionale del Lavoro, Commerzbank and Dexia Credit Local v Provincia di Catanzaro [2023] EWHC 3309 (Comm), the High Court granted summary judgment in favour of the joint bank claimants against the Italian public authority, Provincia di Catanzaro (“Catanzaro”). This is the latest in a succession of cases in which Italian local authorities have relied on Italian law arguments as to capacity, authority and/or validity as a basis for arguments that English-law governed derivative transactions on standard ISDA terms and subject to exclusive English jurisdiction, to which they had agreed, are invalid.Continue Reading Respect my authority: considering capacity to enter into swaps

Despite some counter-revolutionary forces, especially in the US, it seems likely that environmental, social and governance (ESG) concerns will continue to be increasingly significant factors in the structuring and execution of derivative transactions. We have covered the growth of the ESG derivative market (sometimes referred to as sustainability-linked derivatives) on the Long and

Effectively delivering notices under commercial contracts is not as straight-forward as it maybe ought to be, with different contracts requiring different methods of delivery, different content and different timelines. Often these boiler-plate provisions are not treated with the same vigour as the commercial provisions of a contract in negotiations, meaning they can be left containing ambiguity. And this ambiguity will also often come to light at very worrisome times, like where a default notice is being delivered to close out transactions.Continue Reading On Notice: developments in delivery of notices under the ISDA Master Agreement

In Macquarie Bank Limited v Phelan Energy Group Limited [2022] EWHC 2616 (Comm) the High Court considered what must be contained in a notice of failure to pay or notice of an early termination date under the 2002 ISDA Master Agreement for it to be effective. The findings will be of interest to parties considering closing out derivative transactions. Continue Reading You Have Been Served: Requirements for a Valid Failure to Pay Notice and Early Termination Date Notice

Two years ago, I was standing in front of our Mayer Brown offices in Frankfurt, boiling in 38 degree heat, filming a trailer for Linkedin for our 5th Annual OTC Derivatives Seminar, which we had clients coming from across Germany, to attend.

Last June , with international lock-down well under way, we took our

The International Swaps and Derivatives Association held its 35th annual general meeting over three days last week. Last year, the conference was due to be in Madrid, but it was postponed, and with international travel even less viable this year, the conference moved online.

For those unable to attend the online version, here is a summary of the highlights, from a few of three of the topics covered: IBOR transition, prudential issues such as Basel III implementation and future challenges and opportunities such as digitalisation.Continue Reading Virtually the same: 35th ISDA AGM

The Working Group on Sterling Risk-Free Reference Rates (the Sterling Working Group) is an influential body of the Bank of England formed for the purpose of coordinating an orderly market transition from GBP LIBOR to risk free rates such as SONIA, by the end of 2021. During April 2021, it has published papers to assist derivative market participants with this transition. (For further background on the recommended timing for LIBOR transition see our Eye on IBOR Transition blog post here.)
Continue Reading A LIBOR of love: considerations for use of IBOR fall-backs or active transition