The Law on Financial Derivatives
offers you an extensive analysis and explanation of the legal and regulatory principles underlying over-the-counter (OTC) derivatives in the UK. Drawing together concepts from many areas of law – including contract, tort, trusts and private international law – it shows how they relate to the day-to-day practice of financial derivatives markets and the completion of standard market contracts.
Whether you’re looking for concise, to-the-point guidance on the basic issues of OTC derivatives, or a thorough, in-depth analysis of some of the more complex issues surrounding the industry, this title provides you with all the information you need to advise your clients confidently.
New to this edition:
This greatly reorganised and updated sixth edition explains the provisions of the EU legislation EMIR, MIFIR and MIFID II as they relate to financial derivatives. It also explains the new regulatory system in the UK, with specific reference to the regulation of financial derivatives, and the new code for the taxation of derivatives in the UK.
As with all previous editions, the sixth edition presents a close analysis of the case law relating to financial derivatives in England and Wales, including the liability of banks for fraud, negligence and breach of fiduciary duty, and the problems with tracing money and taking security. This includes a close analysis of the decision of the Supreme Court in Lehman Brothers International Europe v CRC
and the range of litigation flowing from the Lehman Brothers collapse affecting property rights on insolvency.
There is a particular focus on the extent of the liability of banks for mis-selling complex financial instruments to customers, including claims involving private customers (e.g. HSBC v Rubenstein, Al Sulaiman v Credit Suisse, Zaki v Credit Suisse, O’Hare v Coutts, Bank Leumi v Wachner, and Bailey v Barclays Bank
), cases involving small corporate entities (e.g. Graisley Properties v Barclays Bank, Property Alliance v RBS, and Green v RBS
), cases involving corporate vehicles (Barclays Bank v Svizera Holdings
, and the appeal in JP Morgan v Springwell
), and cases involving sovereign wealth funds (e.g. Goldman Sachs v Libya
). There is also a discussion of all case law relating to the effectiveness of the ISDA documentation in the wake of the financial crisis, including the decision of the Supreme Court Belmont Properties
and the appeals in Lomas v JFB Firth Rixson, Lehman Brothers Special Financing v Carlton, Pioneer Freight Futures v Cosco, and Britannia Bulk Carriers v Pioneer Navigation
. This book:
- Provides an extensive analysis and explanation of the legal and regulatory aspects of over-the-counter (OTC) derivatives in the UK and in the EU
- Covers all the key aspects of derivative products such as creating and structuring derivatives contracts, interpreting and performing standard market agreements, effecting security and collateral arrangements, set-off and netting
- Considers the manner in which existing legal principles - such as contract, tort, trusts - relate to OTC derivatives transactions
- Analyses the code for the taxation of derivatives in the UK
- Discusses conflict of laws issues
- Analyses the standard market documentation in depth
- Includes in-depth analysis of cases and regulatory changes
- Considers real-world problems faced by practitioners working in-house or in private practice, and suggests solutions.