Derivatives, Repo & Securities Lending

Course overview Euromoney Legal Training presents Derivatives, Repo & Securities Lending, a course that provides a comprehensive overview of the key types of documentation used in these complex areas. You will see many parallels in the operative provisions, events of default, remedies and boilerplate issues between the different areas and documents. You will leave this course with a new level of confidence and understanding. The knowledge you have gained will allow you to become highly effective in dealing with the problematic issues that may arise in relation to Derivatives, Repo & Securities Lending. What this course will cover: The architecture, structure and types of financedocumentation The fundamental building blocks found in all finance documentation All aspects of derivatives documentation issues An overview of the repo and securities lending markets and market standard documentation Guarantees and other credit support documentation Legal opinions and other standard document deliveries Who should attend: This course is designed to cater for the needs of professionals involved in finance documentation: Legal advisors and lawyers In-house counsel Corporate financiers Credit officers Relationship managers Fund managers Compliance and risk officers/managers Regulators Testimonials: “Excellent, practical and very relevant information from an experienced expert” - Rabobank International “ I really enjoyed Christian’s teaching style and everyone felt comfortable asking questions. This allowed us to make the most of the training.” - ING Bank
Day 1 Repos & Securities lending (optional) Sunday 26th January Introduction The mechanics of repo Principle uses Terminology Valuation, initial margin, marginmaintenance, substitution and custody Legal vs economic character Comparison with secured borrowingand securities lending Risks of Repos Counterparty Risk Legal Risk Operational Risk Systemic Risk Global Master Repurchase Agreement Structure of the GMRA Operative Terms Events of Default Netting and GMRA Annexes Tri-Party Repo Origins of tri-party How tri-party repo works Tri-party services Advantages of tri-party Problems with tri-party Overview of Securities Lending The mechanics of Securities Lending Principle uses Terminology Valuation, initial margin, margin maintenance, substitution and custody Global Master Securities Lending Agreement Structure of the GMSLA Biography Operative Terms Margining - cash versus non-cash collateral Events of Default Netting and GMSLA Mini Close-out Day 2 Derivatives Monday 27th January Understanding derivative documentation issues Overview of the OTC derivatives market OTC versus exchange traded derivatives Brief history of the OTC market Dealers, endusers and ISDA Products and OTC derivative examples Standard documentation Understanding the risks of OTC derivatives (L-2) Market risk Credit risk Legal risk Systemic risk Operational risk and rogue traders Collateral risk Country risk Introduction to credit default swaps Overview Transaction structures ISDA® Novation Protocol “Big Bang” Protocol Trade capture and confirmations Potential risks Trade capture STP versus manual processing Risk and errors in confirmation process Master confirmations Close-out netting Payment netting versus close-out netting Ability to terminate Cherry picking Collateral and capital issues ISDA® netting opinions Events of default and early termination payments under the ISDA® Master Agreement (L-5) Events of default and early termination Market quotation, loss and the close-out amount Set-off Automatic early termination Issues in Lehman insolvency Day 3 Derivatives (continued) Tuesday 28th January Key legal, business and credit terms in the ISDA® Master Agreement (L-6) Agreement structure Representations & covenants Calculation agent Boilerplate Service of process Case Study: Review & Negotiation of ISDA® Schedule Understanding the ISDA® Credit Support Annex Key legal, business and credit terms in ISDA® Credit Support Annex New York versus English CSA Thresholds Eligible collateral Transfer timing Case study: review and negotiation of CSA Understanding guarantees Understanding guarantees Waivers, consents Enforceability concerns Case study: review and negotiation of a guaranty Master Agreements (L-11) Purpose Bridge Cross-product master netting agreement Mechanics Sovereign immunity and contractual currency issues Concerns ISDA® clauses Supranationals Illegality and impossibility Illegality and impossibility Possible issues 1992 versus 2002 approachesDerivatives and tax issues Derivatives and tax issues Withholding and other tax risks ISDA® tax gross-up mechanics Understanding payee tax reps Special issues with hedge funds Key additional termination events Credit and collateral issues Key deliveries Day 4 OTC Derivatives Clearing Wednesday 29th January Introduction to OTC Derivative Clearing Mechanics of a cleared OTC derivative Comparing OTC derivatives with futures Trends and volume of clearing OTC derivatives Major participants Regulation and Cleared OTC Derivatives Dodd Frank requirements and rule making Deadlines and Checklists in the U.S. Comparing Dodd-Frank with European Requirements Preparing a Buyside Firm to Clear OTC Derivatives Corporate governance issues Compliance accounting issues Operations and training Negotiating Clearing Documentation with Clearing Members Understanding Customer Account Agreements Key amendments Understanding the FIA/ISDA Cleared Derivatives Addendum Negotiating the FIA/ISDA Execution Agreements Key business, credit and legal terms Resubmissions periods Understanding the ISDA DF Protocols