Derivatives, Netting and Collateral
Matheson’s dedicated derivatives lawyers advise Irish investment entities, asset managers, financial institutions and corporates entering into cleared and uncleared derivatives, securities lending transactions, repo and reverse repo transactions and financial collateral arrangements.
We have extensive experience negotiating and advising on bilateral OTC transactions whether in the form of the industry standard master agreements published by ISDA, ICMA and ISLA or bespoke contractual arrangements.
The Derivatives, Netting and Collateral team was centrally involved in advising ISDA in relation to the drafting and publication of Irish law governed versions of the ISDA Master Agreement and credit support documents.
The team has considerable experience advising on the regulation of derivatives, repo and securities lending transactions, with a focus on the European Markets Infrastructure Regulation (EMIR), the Securities Financing Transaction Regulation (SFTR), the application of the Financial Collateral Directive, and the operation of netting and set-off in Ireland.
We frequently provide legal opinions on issues relating to the enforceability of close-out netting provisions and collateral arrangements documented using industry standard or bespoke derivatives, repo and prime brokerage documentation.
The Derivatives, Netting and Collateral team also supports clients with the management of derivatives contract negotiations and multi-jurisdictional collateral and netting enforceability questionnaires. We have an extensive network of contacts with counsel in other jurisdictions to assist with such projects.
Experience Highlights
- Acting for European broker-dealers, clearing systems and central counterparties to provide opinions in relation to netting and collateral enforceability in Ireland of bespoke trading documentation.
- Managing a number of multi-jurisdictional questionnaires in relation to the enforceability of netting and collateral arrangements in standard documentation used by a major European clearing system.
- Managing negotiation of trading, collateralisation and custodial documentation for international investment banks trading with European funds.
- Advising on the application of EMIR to Irish SPVs, funds, pension schemes and corporates, including advising on trade reporting and preparing EMIR compliance policies.
- Advising banks and borrowers on interest rate and currency hedging documentation linked to facility agreements.
- Advising banks and SPVs on the use of derivatives in the context of repackagings and synthetic securitisations.
- Advising on the use of repurchase agreements in risk retention financing arrangements.
- Alongside members of our Energy and Infrastructure team, advising on the use of derivatives in the energy market, including virtual PPAs, EFET Master Agreements and ISDA EU Emissions Allowances Transaction documents.
- Advising on the offering of FICC sponsored repo services to Irish buy-side entities.
- Advising a number of reinsurers on the use of Irish financial collateral arrangements to secure obligations under reinsurance agreements.
- Drafting bespoke legal opinions on the enforceability under Irish law of security, netting and set-off provisions in prime brokerage agreements for a variety of investment banks.
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