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Derivatives and ISDA

2 Part Course  |  Full coverage of the important aspects of derivatives trading

AML Escalation Training Course

A one-day course presented in two half-day live webinars

This course is a ‘must know’ for:
  • In-house legal counsels at any level.
  • Private practice lawyers at any level from paralegals, trainees, junior and senior associates to partners and heads of departments involved in or likely to be involved in documenting, reviewing and negotiating ISDA transactions.
  • Collateral management teams focussed on margin calls, CSAs etc.
  • Compliance personnel responsible for regulations of ISDA transactions
  • Any professionals looking to get an overview of:
    • the various derivatives and how they are used in structuring.
    • the architecture of the ISDA Documentation framework.
    • the regulations related to ISDAs
The course is a ‘nice to know’ for:
  • ISDA documentation team at any level including paralegals, transaction executives, etc.
  • Operations team that book derivatives trades.
  • Credit Risk personnel at all levels (Analyst, Associate, Vice President, Director and Managing Director) for foundational overview.
  • Derivative traders.
  • Structurers.
  • Accountants who advise on swap transactions.

  • This is the only webinar on the market that covers the various derivatives structures, the ISDA Documentation and the Regulatory Aspects all in one in a two-part stand alone webinar.
  • Covers the UK and US Regulatory Aspects relating to derivatives specifically.
  • The trainer has a rare combination of experience that enables her to cover the legal, commercial, regulatory and structuring aspects of this subject matter.
  • The trainer is lawyer with a background from the magic circle law firms, the bulge bracket investment banks as well as accountancy practice, hence she comes with a wide array of experience ranging from working on complex innovative transactions to BAU flow work.

  • Get an overview of what derivatives are, including the aspects and the types of risks hedged
  • Be introduced to how derivatives are traded
  • Have explained the different types of derivatives including swaps and equity & credit derivatives
  • Learn about architecture of the ISDA documentation including an overview of the ISDA Master Agreement, the ISDA definitions, ISDA protocols and ISDA Credit Support Annexes and Credit Support Deeds
  • Be appraised of the financial collateral regulations, pertinent issues relevant to ISDA Master Agreements and case law relevant to ISDAs
  • Covers an outline of issues to consider when drafting ISDA Master Agreements in relation to loan transactions
  • Be appraised of the regulatory aspects relevant to the derivatives market including EMIR, the EU REFIT Regulations, 2016 ISDA Variation Margin protocol relevant to CSAs and the US regulations - Dodd Frank and FATCA

Part One

Introduction: Derivatives overview

What are derivatives?

  • Legal concerns:
    • Gaming laws
    • Insurance laws

Uses of derivatives

  • Purposes
  • Types of risks hedged:
    • Currency risk
    • Interest rate risk
    • Commodity risk
    • Weather risk
    • Inflation risk
    • Mortality risk
  • Credit Risk – Regulatory capital and balance sheet treatment
  • Synthetics

How are derivatives traded?

  • Over the counter (OTC)
  • Exchange traded

Types of derivatives

  • Swaps
    • Interest Rate Swaps
    • Interest Rate Caps
    • Interest Rate Floors
    • Interest Rate Collars/Structured Caps
    • Currency Swaps
  • Options
    • Call Option
    • Put Option
    • European Style Option
    • American Style Option
    • Bermudan Style Option
  • Forwards and Futures
  • Equity derivatives
  • Credit derivatives
    • Reference Entity
    • Reference Obligations
    • Credit Events
  • Swaptions
  • Total Return Swaps
  • Commodity derivatives
  • Property derivatives

Part Two

ISDA Documentation

Introduction

  • The ISDA
  • Architecture of the ISDA documentation
    • 1992 ISDA Master Agreement (Multi-Currency)
    • 1992 ISDA Master Agreement (Local Currency – Single Jurisdiction)
    • 2002 ISDA Master Agreement
  • Summary of the ISDA documents and protocols

ISDA Protocols

  • What is an ISDA Protocol?
  • Procedure for Adherence
  • Protocol documentation

ISDA Definitions

  • 2006 ISDA Definitions
  • 2005 ISDA Commodity Definitions
  • 2014 ISDA Credit Derivatives Definitions
  • 2011 ISDA Equity Derivatives Definitions
  • 1998 FX and Currency Option Definitions

ISDA Credit Support Annexes (CSA) and Credit Support Deeds (CSD)

  • Purpose & Overview
  • English Law Deeds and Annexes
  • New York Law Deeds
  • 1995 ISDA Credit Support Annex (CSA) – Paragraph 11

Financial Collateral Regulations

  • Title transfer
  • Security financial collateral arrangement
  • Impact on close – out netting provisions

Pertinent Issues:

  • Mark to market valuations and Netting
    • Insolvency
    • Section 6(e)
  • Early Termination and Events of Default
    • Steps to be taken
    • Commercial considerations
    • Netting legal opinions
  • ISDA 2014 Collateral Agreement Negative Interest Protocol
  • Tax
    • Tax representations and undertakings
    • Tax event
    • FATCA
  • Counterparty issues
    • Legal capacity
    • Limitations in constitutional documents

Case law

  • Hammersmith & Fulham
  • Credit Suisse International v Stichting Vestia Groep

Documenting Derivatives in Loan Transactions

  • Issues to consider
    • Loan and ISDA Documentation
    • Events of Defaults
    • Additional Termination Events
    • Specified Entities
    • Notional Reductions
    • Collateral

Regulations

EMIR

  • Purpose
  • Scope of EMIR
  • Outline of obligations imposed
    • Clearing obligation
    • Reporting obligation
    • Risk mitigation requirements (and overlap with MiFIR)
    • New Margining Requirements
    • 2016 ISDA Variation Margin Protocol
    • ISDA SIMM™️
  • EMIR: REFIT EU Regulation
    • Key Changes to EMIR
    • Key Impact
      • Changes of Definition of Financial Counterparty (FC)
      • Small Financial Counterparty (SFC)
      • Determination of NFC clearing threshold
      • Reporting Obligation
      • FRANDT (Fair, Reasonable Non-Discriminatory and Transparent commercial terms)
      • Power to Suspend Clearing Obligation
      • Article 39 EMIR – National Insolvency Laws
      • Information from CCPs

US Reforms

  • Dodd Frank Act

The trainer is an expert in structured finance specialising in securitisation, real estate finance, banking, capital markets, derivatives, structured products and financial regulation.

She is a consultant, keynote speaker, business adviser, author and trainer and has practised law for nearly 20 years in the banking & finance industry. She has spent her career advising some of the most prestigious global financial institutions such as Goldman Sachs, Morgan Stanley, Citigroup & Credit Suisse. Her primary role was to manage the legal risk globally across the various businesses within an investment bank. As a trainer, she now designs and leads training workshops for senior lawyers, law firm partners, accountants, bankers and various senior executives.

She has been actively involved in the creation of innovative structured transactions; structuring, drafting and negotiating complex financings including complex  repo facilities, hybrid structured products with multiple embedded derivatives, repackagings, synthetic CLOs and regulatory driven structured transactions; all types of securitisation transactions and restructuring them; supervision of large scale remediation project involving the mis-selling of interest rate swaps, financial regulatory projects and financial litigation.

She holds a Law LL.B (Hons) degree from University College London (UCL) and has worked in the Finance Know-how team at Clifford Chance. She trained at Sidley Austin Brown & Wood LLP and worked on a number of award winning transactions involving repackagings, securitisations and US corporate securities. She practised as a solicitor at Linklaters LLP in Singapore and has also worked in New York and Hong Kong.

Returning to London, she spent around 5 years at Allen & Overy LLP. She advised on a wide range of issues including swaps, insolvencies, disclosure matters under the Prospectus Directive, US 144A SEC registered deals, real estate finance, master trust, CMBS and RMBS securitisations and Opco/Propco structures for loan securitisations. She was seconded to Credit Suisse to work on the Real Estate Finance trading desk where she worked on loan origination, leverage finance and acquisition finance deals. Later she was seconded to Citibank where she advised on LMA loans, highly structured real estate finance transactions, risk mitigation and syndication.

In 2007 she moved to Credit Suisse as in-house legal counsel advising on structured capital markets, derivatives and structured products including fund-linked products, a range of exotic trades, CDOs, CLOs, repos and other highly structured financing transactions conducted during and post credit crunch. She structured and documented trades that achieved the required regulatory capital and balance sheet treatment using a combination of techniques such as credit default swaps, call options or unfunded loan participations.

She started working as a specialist consultant in 2009 advising her clients on complex projects involving legal, operational, regulatory and compliance matters on derivatives, structured products.

This 2-part webinar provides full coverage of the important aspects of derivatives trading. It is relevant for in-house lawyers and private practice lawyers alike, traders and bankers involved in complex structuring involving swaps, ISDA documentation teams, operations teams that book ISDA trades, compliance personnel responsible for ensuring that all regulations relating to ISDA transactions are complied with as well as accountants who advise clients on swap transactions.

We set the scene by giving an introduction to derivatives; what they are, why they are used, who uses them and how they are traded. We then go through the various types of derivative products in the market showing the potential of the use of derivatives in a wide range of product sectors.

Then the webinar covers the workings of the derivatives market and the trade association, ISDA. We go through the ISDA documentation framework including coverage of the ancillary ISDA documentation, the ISDA Credit Support Annexes and Credit Support Deeds and the Financial Collateral Regulations. We then cover the pertinent issues in ISDA documented trades such as netting, mark to market valuations, negative interest rates, events of default and early termination to name a few. We will then discuss how to document derivatives in loan transactions and cover some English law cases and counterparty issues.

Finally, the webinar covers the EU and US regulations effecting derivatives. We will go through how the banks and law firms should implement the regulations with practical guidance where appropriate.

  • As a newly qualified lawyer, I appreciated how the presenter took us back to basics when taking us through the foundation of ISDA and derivatives. But as an offshore lawyer I particular noted and appreciated how the presenter highlighted how each topic would be relevant to the work we do. It was a nice touch how the training sessions included people from all professions as you got to experience the topics being presented in a broader sense.
  • Very competent trainer using good examples to explain complex matters.
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£895.00

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