Category Archives: Derivatives

The Rise of Actively Managed Certificates

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)

Segregation and Porting: Two Special Features for Cleared Trades

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

Update on Over-The-Counter (OTC) Derivatives Legislation in the US, in Switzerland and in the EU

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

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 backdrop of the financial market crisis, P.R.I.M.E. Finance is a new and innovative complement to global regulatory reform. The institute aims to assist judicial systems in the settlement of disputes on complex financial transactions in both developing as well as matured financial markets.

P.R.I.M.E. Finance’s core activities include dispute resolution services such as arbitration and mediation, expert opinions, determinations and risk assessment, as well as education and judicial training, and setting up a library and database of relevant cases. The key asset of the organisation is its Panel of Experts, and the commitment and spirit of cooperation that exists among them. The P.R.I.M.E. Finance Experts include sitting and retired judges, central bankers, regulators, academics, representatives from private legal practice and derivative market participants. It is a diverse and international group drawing on a wide variety of backgrounds in respect of its geographical representation, market and jurisdictional experience, linguistic skills and nationalities. This distinguished group of individuals has been carefully vetted and is committed to the goals of the organisation, including its independence.

By Professor Jeffrey Golden, Chairman of the Management Board of the P.R.I.M.E. Finance Foundation, and Camilla M.L. Perera-De Wit, Registrar, P.R.I.M.E. Finance (Reference: CapLaw-2013-5)

Update on Over-The-Counter (OTC) Derivatives Legislation in the US

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.

Update on Over-The-Counter (OTC) Derivatives Legislation in the EU

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.