The Derivatives Group is a global practice that advises dealers and end-users in a broad range of derivatives and other trading matters. Our lawyers assist clients in structuring, documenting and executing derivative transactions and represent clients in regulatory, tax and litigation matters related to derivatives and other common trading transactions, including repurchase transactions and securities lending. Our clients represent a broad range of industries and applications which include finance and banking, securities, energy trading and regulated industries.
Transactions
We represent clients in stand-alone and structured transactions. From basic interest rate swaps to uniquely tailored synthetic securitizations, we help clients with trades involving commodities, credit exposures, currencies, equity interests, interest rates, emission credits/offsets and other exotic exposures. Our lawyers have closed synthetic and hybrid CDOs and synthetic securitizations and other structured cash flow securities. We also have done structured trades such as index linked notes. We are intimately familiar with almost every form of standardized trading documentation including ISDA, IFEMA, IFXCO, EEI MPPSA, WSPP, EFET/IECA and NAESB Contracts.
We also represent clients in various repo transactions and securities lending agreements using both market and custom forms.
Trading Documentation and Counterparty Risk
The Derivatives Group helps several clients evaluate their current trading documentation and advises clients on modifications to promote consistency across their trading documents. Clients often look to our lawyers for guidance on market norms on issues such as netting, set-off rights, close-out methods and collateral support.
Prime Brokerage Relationships
We assist many clients in entering into prime brokerage arrangements, including the negotiation and execution of service agreements, master repurchase agreements, securities forward agreements and derivatives documentation.
Close-outs
We have helped several clients in terminating transactions, often where one party is insolvent. Attorneys in the Derivatives Group frequently advise clients on interpretational issues and strategic considerations in negotiating and resolving terminations.
Regulatory Compliance
Many of our clients are regulated institutions or must address significant regulatory issues when entering into derivative transactions. Derivatives Group attorneys have advised clients on a wide range of regulatory issues, including those under the Commodities Exchange Act. Some of these issues relate to capital relief and registration requirements for commodity pool operators or commodities trading advisors.
Restructuring
The Derivatives Group has advised several clients in restructuring transactions that involve complex issues concerning existing derivative transactions or the use of specially tailored derivatives to facilitate the overall restructuring. Often, these transactions require creative solutions to challenging issues about termination rights, collateral support and legal characterization.
Litigation
In recent years, litigation over derivative transactions has increased significantly. Our lawyers currently represent clients in arbitration and litigation disputes on issues such as credit default swap transactions.
Tax
We advise several clients regarding tax implications for derivatives. For example, we have worked with clients in structuring and documenting prepaid variable share forwards to comply with recent guidelines by the Internal Revenue Service.
Market Participation
Derivatives Group attorneys actively participate in industry groups related to the derivative markets. We are members of ISDA and actively participate in various ISDA committees. In addition, we work with several clients monitoring and responding to legislative and regulatory developments related to derivatives.
As a firm with international reach, Hunton & Williams delivers sophisticated advice on derivatives matters to clients across the globe. The Derivatives Group assists clients in the development, structuring and execution of derivative transactions over a wide continuum of complexity and industries. We also represent clients in regulatory, tax and dispute resolution and litigation in matters involving derivatives. As a result, the Derivatives Group offers comprehensive, global legal advice to clients on derivative related issues across a diversity of industries and jurisdictions.