The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Key issues for derivatives transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.
This Practice Note sets out a basic introduction to derivatives focussing on:
what a derivative is
how to document and negotiate an over-the-counter (OTC) derivative
the different types of derivative structure
how derivatives are used in lending transactions
the different types of collateral and credit support used in OTC derivative transactions
how derivatives are cleared and settled
how derivatives are regulated
tax issues related to derivatives
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