Course dates
Euromoney Legal Training and this course are neither endorsed by, nor affiliated with, ISDA®.
Course overview:
Swaps and other OTC derivatives have grown both in volume and in complexity over the years. They provide flexible, effective and valuable tools for risk management and investment. On the other hand, they were blamed by some for the recent financial crisis largely due to their role in structured financings. Swaps are legally complex, a fact that frequently leads to litigation. To protect all parties involved, transactions must be properly documented.
Lawyers and documentation staff need to understand both the products, the legal issues and effective documentation techniques. This five-day intensive training course will provide you with the tools you need to deal with all aspects of derivatives and make sure your institution is protected.
Through a series of lectures, practical workshops, case studies and the speaker's own extensive experience you will be truly prepared for any issue arising from derivatives deals and their associated documentation.
Who should attend:
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Lawyers in banks, financial institutions, funds and corporations
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Documentation staff who deal with derivatives transactions
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Bankers in derivatives transactions, particularly those wishing to understand credit and other risk ramifications
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External lawyers who advise clients dealing with derivatives
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Financial regulators and others charged with oversight of the OTC derivatives markets
ISDA® is a registered trade mark of the International Swaps and Derivatives Association.
Day 1
Introduction and welcome
The derivatives markets and their uses
Description and uses of basic derivative structures
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Swaps
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Fully-paid transactions
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Hybrid securities
Derivatives risk
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Legal and operational risk
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Position or market risk
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Valuation and hedge risks
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Delivery risk
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Long term exposure: rate risk and performance risk
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Quantification of credit risk
Netting and insolvency issues
Summary of US and UK insolvency issues
Capacity and authority
Korea Life
Regulation
Suitability/misrepresentation
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Bankers Trust Cases
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Kwiatkowski, Korea Life, Eternity, Caiola and Springwell
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PowTel / SunTrust and Peekay
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Nonreliance representations
Tax
Accounting
Day 2
Introduction: need for documentation and functional analysis
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Avoiding uncertainty
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Financial provisions: confirmations and definition booklets
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Legal, credit and trading relationship: master agreement
ISDA® agreements and other derivatives documentation
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Overview
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Evolution of documentation: 1977-2010
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Architecture of documents
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Fitting together the ISDA® components
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One master for all products/offices?
Confirmations
Confirmation workshop
Prepare an interest rate swap confirmation.
ISDA® master agreement (provision-byprovision)
ISDA® master agreement
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Sections 5-6
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Grounds and procedures for termination
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How to calculate close-out values
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Nuova Safim, ANZ / Societe Generale, Peregrine 1 and 2 and High Risk
ISDA® master agreement
ISDA® master agreement: section 7
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Concepts
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Negotiated terminations
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ISDA® forms
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ISDA® novation protocol
Section 7 workshop
Day 3
ISDA® master agreement: sections 8-14 completing the schedule
Master agreement workshop
Break into small groups - each with a statement of a party’s policy regarding the ISDA® 2002 master agreement. Each group:
1. Completes first draft of a schedule to the ISDA® 2002 master agreement
2. Reviews and responds to other group’s draft
3. Negotiates a final draft with the other group
Credit enhancement
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Guarantees
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Collateral
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Rehypothecation
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Partial?
ISDA® credit support documents
Currency products
Day 4
Currency products
Commodity/project financing
Insurance, economic and real estate derivatives
Economic derivatives
Equity derivatives
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Equity share derivatives
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Equity index derivatives
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Baskets
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Form: option, swap and forward
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Equity-funding deposit swap
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Other uses
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Takeover legislation (Perry)
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Employee offering (Marconi)
2002 equity derivatives definitions
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Products; the dealing market
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Trading (hedge disruptions)
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Index events
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Extraordinary events (mergers, recapitalizations, etc)
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Fallbacks
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Knock-in/out events
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Additional disruption events; hedging issues
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Calculation agent; determining party
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Additional representations and acknowledgements
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Master equity derivatives confirmation agreements
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2006 fund derivatives definitions
Credit derivatives
2003 credit derivatives definitions: overview
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Reference entity
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Credit events (obligations and credit event): issues
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Physical and cash settlement: issues
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Dealing market choices: compromise; standard capital
Indices and auctions: the new world
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Credit Indexes
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Auction: 2009 protocols
Day 5
Principles of structured derivatives
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Tricks
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Indexed security
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Currency option built into loan
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Embedded derivatives: principal protected/unprotected
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Issuing vehicles: program issuers, spes and rating agencies
Structured notes
Case studies workshop
Deconstructing complex notes
Common issues
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Calculation agent
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Prohibited transactions
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Hedging and self-dealing
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Disclosure
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Tax issues
Structured issuers – CDOs
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SPE issues
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Credit supplied independent of originator
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Rating agency requirements
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Enron structures
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Monetized put and call: deferred sale of securities
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Hedge issues
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Transformer companies
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Repackaging: yield enhanced note based on asset swaps
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Clean, yield-enhance note; complexity at issuer level
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Credit issues
Synthetic securitisation
Issues in relation to the ISDA® master agreement
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Rating agency requirements
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Termination close-out calculations: default or external illegality or tax
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commonly overlooked issues
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Program issuers: note payments on an unanticipated early termination?
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Commonly overlooked exposures
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Recent regulatory developments
Hotel in Central London, London, United Kingdom
Venue and Accommodation Information
All Euromoney Legal Training events are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds you expectations.
We have selected several venues across Central London, that we are confident meet our strict criteria for quality, service and professionalism. Each venue also offers accommodation for Euromoney Delegates at discounted professional rates.
Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date. Euromoney Legal Training can however recommend the following venues:
The Rembrandt, Knightsbridge
The Rembrandt is a spectacular hotel with the timeless ornate architecture and traditional qualities of an Edwardian building. Located in the exclusive area of Knightsbridge, the hotel was originally built as apartments for Harrods, as such all rooms have an individual shape, giving them each their own special feel. Each of the training rooms have natural daylight and a private lobby area.
For more information visit http://www.sarova.com/rembrandt or call +44 (0)20 7589 8100
Millennium Knightsbridge
The four-star deluxe Millennium Hotel London Knightsbridge is situated in the heart of one of the best shopping areas of London. Of all the hotels in Knightsbridge, this Millennium Hotel is amongst one of the most contemporary and stylish Knightsbridge hotels in the area. This Knightsbridge hotel has excellent transport links - only a short walk from Knightsbridge underground station on the Piccadilly line and just 40 minutes from London Heathrow Airport via the underground.
For more information visit www.millenniumhotels.co.uk/millenniumknightsbridge or call +44 (0)20 7235 4377
Crowne Plaza, Kensington
The stylish Crowne Plaza London-Kensington hotel is a short walk from Victorian shopping, royal parks and London's epic museums. All the training rooms are fed with natural daylight with lunch or coffee breaks taking place on their attractive garden terrace.
For more information visit http://www.ichotelsgroup.com/crowneplaza/hotels/us/en/london/lonke/hoteldetail or call +44 (0)20 7373 2222
London Marriott Hotel, Kensington
Located close to Central London in the heart of Kensington, the London Marriott Kensington is perfectly situated for the best shopping and tourist attractions.
For more information visit http://www.marriott.co.uk/hotels/travel/lonlm-london-marriott-hotel-kensington
The Regency Hotel, Kensington
The hotel is conveniently located for all major transport links, such as London’s Heathrow, Gatwick and Stanstead airports, all major London train stations, and is a short walk from the nearest tube station (South Kensington, Piccadilly Line).
For more information visit www.londonregency.com or call +44 (0) 207 373 7878
Radisson Edwardian, Central London
The Radisson Edwardian offers a wide range of venues and accommodation across Central London, including such famous London areas as Covent Garden, Leicester Square and Mayfair. Each location offers 4-star accommodation and training facilities.
For more information visit www.radissonedwardian.com or call +44 (0)800 37 44 11
Euromoney Legal Training has also appointed approved and independent booking agencies to help you find the best location for you to stay during your time in London:
Venue Search UK
All the delegates have to do is telephone +44 (0)20 8541 5656 or email beds@venuesearch.co.uk and say that they are a Euromoney delegate!
Zibrant
Zibrant offer a huge range of hotels across London and can find you accommodation as close to your training venue as possible. They will ensure that you receive preferential rates as a Euromoney delegate. Go to www.zibrant.co.uk/euromoney for more details. Alternatively you can email your enquiry to euromoney@zibrant.co.uk or call +44 (0) 1332 285 521.
Euromoney Legal Training strongly recommends that you do not book your accommodation until you have received full course confirmation.
If you require any further information, please contact us:
Euromoney Legal Training
Nestor House
Playhouse Yard
London
EC4V 5EX
United Kingdom
Tel: +44 (0) 207 779 8601
Fax: +44 (0) 207 779 8599
legaltraining@euromoneytraining.com
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Schuyler K Henderson
Schuyler K. Henderson is one of the leading International Financial Lawyers. Since 1977 he has been resident in London, during which time he has represented numerous international financial institutions in the full range of credit extensions, including syndicated lending, letter of credit and guarantee facilities, secured financings, shipping and aircraft financings, securities issuances and derivatives. He has been particularly active in the derivatives market, having acted for one of the participants in the first currency exchange agreement in1977. Since then he has been actively involved in the creation of innovative financial products on behalf of over fifty financial institutions, and is generally regarded as one of the leading derivatives lawyers. His practice has regularly included: developing new products; structuring, drafting and negotiating complex financings, including repackagings, credit-linked securities and tax or regulatory driven structured transactions; preparation of standard form ISDA documentation (including for use with specialised counterparties and confirmation templates for virtually all types of derivatives); supervision of backlog documentation; provision of regulatory, enforcement and tax advice in respect of over 30 jurisdictions; enforcement of derivatives documentation: representation of parties in disputes involving derivatives; and establishment of derivatives dealers in a number of jurisdictions. Schuyler is the author of numerous publications on financial topics, and is a member of the Editorial Advisory Board of Butterworths Journal of International Banking and Financial Law. He is a regular speaker and chairman at various conferences on international finance in many international financial centres. He is the author of Henderson on Derivatives (LexisNexis 2003).
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
26-28 Sep 2012 (Copenhagen, Denmark)
Swaps and derivatives have become a vital tool in risk management and structured financings and are used by an ever-increasing number of banks, financial institutions, funds and corporations. This Euromoney Legal Training course will teach delegates how to properly document a transaction to protect all the parties involved.
30 May 2012 - 1 Jun 2012 (London, United Kingdom)
This Euromoney Legal Training course is specifically designed for delegates who having mastered the basic issues, are facing the challenges of these new and complicated applications. As the range of users and applications of swaps and derivatives increase, the legal and documentation issues become difficult and require more sophisticated techniques.
26 Aug 2012 - 7 Sep 2012 (Oxford, United Kingdom)
**Early Bird Offer Extended - Book before May 28th to save 10% - More than £700**
Euromoney’s Summer School has developed an enviable reputation as the premier international financial law event on the training calendar.
This residential school offers an unequalled opportunity for lawyers from around the world to learn the principles and practice of international financial law from expert practitioners.
Over two weeks, the Summer School will cover a substantial range of topics, including international borrowing and lending, capital markets, new financial instruments and techniques, trade and project related financing, and securitisation.
Moreover, the Summer School has a strong practical orientation; it provides guidance and advice on how to identify, approach and solve the legal problems posed by international financial transactions.
Case studies and workshops provide opportunities for participants to study actual transactions and become involved in documentation and negotiation exercises.
9-13 Jul 2012 (London, United Kingdom)
This five-day Euromoney Legal school will be invaluable in increasing your knowledge and understanding of the key legal and contractual issues in international project finance and improve your ability to solve practical problems.
9-13 Jul 2012 (London, United Kingdom)
At this school Dr Ken Mildwaters, an acknowledged international expert with a wealth of experience in helping clients to formulate successful and effective business partnerships, will discuss with participants why parties come together in a cooperative endeavour to undertake a phase of a project, the legal forms they might use in so doing, the relationships created by the forms and the principle legal and commercial issues that affect those relationships.
Course dates