Sector specific derivatives

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This Overview is a guide to the Banking & Finance content within the Sector specific derivatives subtopic, with links to appropriate materials.

Financial derivatives are contracts entered into between two parties, or purchased over an exchange, and which take their value from another instrument. They have a wide variety of uses and allow investors flexible and cost effective access to the movements of shares, bonds and instruments which are not available through direct investment in that particular asset class.

The flexibility of derivatives allows them to be used for a wide range of purposes. The Practice Notes in this sub-topic explain some of these different types of derivatives.

For more information on the different types of derivatives, see Practice Note: Types of derivatives.

Swaps

A swap describes a wide variety of derivative transactions. Since their inception in the 1980s, swaps have evolved into a worldwide market encompassing trillions of pounds worldwide in notional value. They are subject to different regulations and laws depending on the market in which they are traded. Swaps are generally documented under the International Swaps and Derivatives Association, Inc. (ISDA) framework.

In

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Latest Banking & Finance News

Reinsurers say bank filed Russian jet engine claim too late

Law360, London: A group of reinsurers has denied owing Bank of Utah US$9.5m over a jet engine allegedly stuck in Russia since the country's invasion of Ukraine, saying the claim is time-barred under Russian law.

Court declines to grant relief under section 423 of the Insolvency Act 1986 as defendants acted in good faith (Credit Suisse Virtuoso Sicav-Sif (in respect of its Sub-Fund, the Credit Suisse (Lux) Supply Chain Finance Fund) and another company v Softbank Group Corp and other companies)

Restructuring & Insolvency analysis: The High Court dismissed a claim under section 423 of the Insolvency Act 1986 (IA 1986). Despite finding that the statutory test under IA 1986, s 423 was satisfied, the court declined to grant relief because the defendants acted in good faith without knowledge of wrongful purpose, and the assets received later became worthless. The judgment provides important guidance on IA 1986, s 423 claims, particularly the factors weighing against relief, even where the requisite elements are made out. Practical implications written by Daniel Lewis, barrister of Wilberforce Chambers.

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DBT and OFSI publish guidance on countering Russian sanctions evasion for fright and shipping sector

The Department for Business & Trades and the Office of Trade Sanctions Implementation has published detailed guidance for the freight and shipping sector on preventing Russian sanctions evasion. The guidance is designed to help businesses identify common methods of Russian circumvention and reduce the risk of becoming targets for those attempting to evade sanctions. The guidance specifically targets freight forwarders, carriers, hauliers, customs intermediaries, postal and express operators, and other companies facilitating the movement of goods and is an integral part of the UK government’s boarder framework of embargoes and trade sanctions.

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