Derivatives

Hunton Andrews Kurth LLP's cross-border derivatives practice advises a wide variety of clients on a range of international derivatives matters, including for purposes of hedging, compliance, governance, tax, litigation and insolvency. Our lawyers assist clients with swaps, futures, options and other regulated derivatives, as well as with forward agreements, trade options and other exempt contracts. We represent clients in establishing and maintaining account relationships with swap dealers, futures commission merchants and other counterparties. We handle derivatives based on all types of underlying values, including interest rates, currencies, commodities, foreign exchange (FX), credits, equities, securities and security indices. Our work with environmental commodities, such as emission allowances, carbon credits and other offsets, renewable energy certificates and water quality improvements, is especially noteworthy.

We represent clients in stand-alone transactions and on derivatives that are part of larger engagements, including those connected with synthetic structures. Our work involves standardized derivatives such as cleared contracts and over‑the‑counter (OTC) transactions, as well as tranched derivatives, hybrid instruments and other tailored derivatives transactions. Our lawyers are familiar with virtually every form of standardized trading documentation, and regularly negotiate customized transaction documents. In addition, we help clients evaluate their trading programs and advise on modifications to minimize risk, maximize hedging effectiveness, promote consistency across hedging platforms, obtain price transparency, achieve best execution and satisfy obligations to third parties.

Our lawyers provide guidance regarding market practices, regulatory requirements and available exemptions in addition to typical arrangements for resolving matters pertaining to netting, set‑off, margin, trading limits, termination, close-out and liquidation. Clients also seek our counsel in connection with counterparty, brokerage, exchange and clearinghouse risk, due diligence, know-your-counterparty (KYC) reviews, conflicts of interest, customer protection rules, disclosure obligations, suitability determinations, avoidance of risk mutualization and antifraud measures. We also help clients obtain no‑action letter relief and legal interpretations from regulatory authorities. Given the fast pace of legislative and regulatory change, we monitor and help clients respond quickly to derivatives-related government action, and actively participate in trade organizations and other industry groups.