Legal Derivatives School: M1 - Swaps and Other OTC Derivatives – Legal Issues and Documentation

Euromoney Training and this course are neither endorsed by nor affiliated with ISDA® Since 1990, Euromoney Training, in association with Schuyler K Henderson, has organised this highly successful course on the legal concepts in derivatives and the documentation of derivatives transactions using the ISDA® Master Agreement. 'Legal Derivatives School' is presented in a modular format. You are recommended to attend full modules or you can contact us at training@euromoneyasia.com to book separate modules (required to book at least two days). Module 1: Swaps and Other OTC Derivatives – Legal Issues and Documentation 27-28 October 2014, Singapore Module 2: Equity and Credit Derivatives - Legal Issues and Documentation 29 October 2014, Singapore Module 3: Legal Issues in Derivatives Linked to Loans, Structured Notes and Structured Issuers 30 October 2014, Singapore Module 4: The Dodd-Frank Act, EU Derivatives Regulation and Central Counterparties 31 October 2014, Singapore Course overview Swaps and derivatives have become more and more complex every year, and have come under close regulatory scrutiny. Products such as credit derivatives and equity derivatives and the use of derivatives in financing structures pose particularly interesting and significant issues. New laws and regulations are changing the practices and conventions of the OTC derivatives market. The advanced modules of this course focus on these issues and are specifically designed for delegates who have mastered the basic issues but are facing the challenges of these new and complicated applications. As the range of users and applications of swaps and derivatives increase, so the legal and documentation problems become more difficult and require ever-more sophisticated techniques. This 5-day School fully explains the legal aspects of swaps and derivatives and derivatives in structured financing. You will gain a complete understanding of the key legal issues in swap documentation, and in particular the important problems of default, insolvency and enforcement. Summary of course content Gain essential hands on experience of documenting swaps and other derivatives Perform intensive and objective analysis of 1992 and 2002 ISDA® master agreements, 2002 ISDA® equity derivatives definitions and 2003 credit derivatives definitions, and related master confirmations Protect your organisation against potential problem areas such as default, capacity, insolvency, enforcement, regulation and tax Learn to structure agreement "fixes" to ISDA® agreements Understand the principles of derivatives in structured financings Learn about new credit derivative developments: Determination Committees, auctions and central counterparties Who should attend this training course? Gain essential hands on experience of documenting swaps and other derivatives Perform intensive and objective analysis of 1992 and 2002 ISDA® Master Agreements, 2002 ISDA® equity derivatives definitions and 2003 ISDA® credit derivatives definitions, and related master agreement confirmations Protect your organisation against potential problem areas such as default, capacity, insolvency, enforcement, regulation and tax Learn to structure agreement “fixes” to ISDA® Agreements Understand the principles of derivatives in structured financings Learn about new credit derivative developments: Determination Committees and Auctions Learn about prime brokers, central counterparties and the new derivatives regime in the US and Europe Course fee: US$3,850/person for any two days US$4,990/person for any three days US$6,150/person for any four days US$6,800/person for all five days ISDA® is a registered trademark of the International Swaps and Derivatives Association
Module 1 - Swaps and Other OTC Derivatives – Legal Issues and Documentation 28 October 2013 The derivatives markets and their uses The markets Definitions The tensions and key concepts Description and uses of basic derivatives structures Swaps Fully-paid transactions Hybrid securities Derivatives risk Legal and operational risk Position or market risk Valuation and hedge risk Delivery risk Long term exposure: Rate and performance risk Quantification of credit risk Netting and insolvency issues Principles of insolvency Netting: Payment and close-out Summary of US and UK insolvency issues Cases: Enron: MARTA Lehman Brothers; Metavante and English cases Capacity and authority Cases: Hammersmith & Fulham, Piraeus and Korea Life Resolutions Signatories Funds and other special counterparties Case: Minmetals Regulation Regulation overview Suitability and misrepresentation Tax Direct tax in another jurisdiction Withholding tax HIRE Protocol FATCA: A new global risk ISDA® structure Accounting FAS 133 IAS 39 Need for documentation and functional analysis Financial provisions: Confirmations and definition booklets Legal, credit and trading relationship: Master agreement Evolution of documentation: 1977- 2011 Architecture of documents Fitting together the ISDA components One master for all products/ offices? Confirmations Oral trades, confirmations and confirmation process Backlogs Electronic confirmations Confirmation workshop 29 October 2013 ISDA® Master Agreement (provision-by-provision) Sections 1-4 ISDA® Master Agreement Sections 5-6 Grounds and procedures for termination How to calculate close-out values Cases: Nuova Safim, ANZ/Societe Generale, High Risk, Peregrine I and II, TXU/Enron, Marine/ Pioneer and Brysons ISDA® Master Agreement: Section 7 Concepts ISDA® forms Novation Protocol Negotiated terminations ISDA® Master Agreement: Section 8-14 Completing the schedule Credit enhancement Guarantees Collateral Rehypothecation Partial ISDA® Credit Support Documents CSAs Disputes