With the implementation of EMIR in the U.K and Europe, the OTC derivatives are now highly regulated both in terms of the operation and the product like other exchange-traded derivatives (commodity derivatives). Critically discuss the statement

Maximum word Limit: 5000 words INCLUDING footnotes, but EXCLUDING bibliography and cover page.

Please ensure you check your word count on Microsoft word. Do NOT use Turnitin as this is incorrect. You are required to submit a bibliography for this assessment. This assignment is assessed and forms 100% of your overall module mark. Before writing your essay you are advised to consult the assessment criteria used for marking. This is available on the Blackboard page ‘Law Assessment (LLM)’. You will be able to view your results via Turnitin . Full details on how to access your results will be sent to you before this deadline.

Please answer ONE of the following questions:

Question 1

‘Traditionally, it has been assumed that international business communities seek to avoid the courts. However, the national courts play a prominent role in adjudicating disputes involving derivatives. The decisions by the English courts demonstrate that adjudication does not necessarily undermine widely used standard form contracts (ISDA MASTER AGREEMENT 2002), and that it may even reinforce practices that underpin them.’ J Braithwaite, ‘Standard Form Contracts as Transnational Law: Evidence from the Derivatives Markets’ (2012) 75(5) Modern Law Review 779–805 Critically evaluate the above statement as to how courts’ decisions affect the ISDA Master Agreement 2002.

Question 2

International bond issuance is very different from the operation of a syndicate of international banks in international loan markets, although in economic terms both types of financial transaction involve borrowing money from savers for financial purposes. Critically discuss parties’ roles involve in an international bond issue as well as the legal documentation involved.

Question 3

Eurodollar bonds are typically referring to the U.S dollar denominated bonds that are issued in jurisdictions outside United States. To issue U.S dollar denominated bonds or securities in the U.S, the LEICESTER LAW SCHOOL U.S Securities Act 1933 requires the issuer-entity to file the registration statement under section 5. However, the SEC has long issued a safe harbour procedure for those non-U.S s5 registered entities to issue U.S dollar denominated bond outside U.S without being prosecuted by the SEC. Critically discuss the safe harbour (including s144) procedure for the U.S dollar denominated bond issued in London.

Question 4

A credit derivative is arguably similar to an insurance contract in its economic function to transfer risk and hence it is at risk of being characterised as an insurance contract. Critically discuss the statement

Question 5

It is undoubtedly true that any receivables can be repackaged through the process of securitisation as a means to raise finance from the public. To what degree do you agree with the statement and critically discuss the process of securitization, the parties to a securitization process and the legal risks of securitization.

Question 6

With the implementation of EMIR in the U.K and Europe, the OTC derivatives are now highly regulated both in terms of the operation and the product like other exchange-traded derivatives (commodity derivatives). Critically discuss the statement