All lawyers working in derivatives will be impacted by the move to central clearing of swaps. Those clients who will not be subject to mandatory clearing will need to assess, and keep under review, whether there is a greater cost in leaving a swap uncleared.
Lawyers who work with ISDA documentation are being faced with the challenge of a completely new approach when dealing with Client Clearing Agreements.
Although the ISDA is the base for the Addendum, the taxonomy is very different. Under the ISDA one would seek balanced terms, but under the Addendum you have to get the best you can from a very one-sided template.
The courses explain the background to the Addendum (and the Clearing Module) and show what can be achieved.
In order to make sense of the documentation, it is necessary to understand in some detail how clearing houses operate, and the difference between forwards, futures and swaps, and the relationships between the market participants.
The basis of both courses is:
- What is clearing?
- Trade dissection
- Managing risk
- Status of parties
- Clearing a swap
The courses will also take into account the potential impacts of Brexit.
Clearing in a Day
This full-day course provides a solid understanding of the framework for clearing, and a deep dive into the documentation with which lawyers have to grapple.
CCP Clearing: The Basics
The course, normally held in the morning, is less focused on the detail of the documentation, and is aimed at lawyers who need to understand what clearing means, but are unlikely to have to negotiate client clearing agreements. It is well-suited to buy-side in-house legal departments, who may wish to attend in the company of their colleagues in related areas.