The definition of “Equivalent Securities” refers to securities which are equivalent to the “Purchased Securities”.  In other words, they are securities which are equivalent to the original securities which the Buyer bought from the Seller (or, if it’s easier to look at a Repurchase Transaction as being economically equivalent to a loan, “Equivalent Securities” are […]

Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type.  The concept of ‘fungibility’ lies at the heart of what it is for one asset to be “equivalent to” another asset. By way of an example, one five pound note is entirely fungible […]

Grant & Others v Firth Rixson Acquisitions Corporation (Europe) Ltd & Another (Re Lehman Brothers International (Europe)) [2022] EWHC 2532 (Ch) A recent High Court case involves the administrators of Lehman Brothers’ European firm, and raises the possibility of the bank returning as a going concern. Facts of the Case: This case involved two interest […]

In the context of a GMRA, a “Forward Transaction” is a Transaction in respect of which the Purchase Date is at least three Business Days (“three” is actually in square brackets, so that parties can select the number of Business Days that should apply) after the date on which the Transaction was entered into and […]

Update from the FCA – the velvet glove goes back on Following on from the FCA’s warning of 25th January that firms needed to ramp up their preparations for the incoming Consumer Duty, on the 3rd of February the regulator has provided a package of advice tailored to specific sectors in the form of a […]

Headlines The 15th December joint policy statement from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) follows the consultation paper published in July, which received two responses. This policy statement has adjusted aspects of margin requirements for OTC derivatives contracts that are not transacted through central counterparty clearing, as well as making a […]

MUR Shipping BV v RTI Ltd [2022] EWCA Civ 1406 Case handed down in the Court of Appeal on 27th October 2022. The judgement can be found here. Route through the courts Facts MUR are a Dutch shipping company. RTI are a chartering company that form part of a Russian-owned group. The contract of affreightment […]

There are ten “Events of Default” under the 2000 and 2011 GMRAs, but only 8 under the 1995 GMRA.  The occurrence of an “Event of Default” allows the non-defaulting party to terminate the GMRA as well as all outstanding transactions.  At a high level, the Events of Default address circumstances where: Where the text is […]

A summary of the recent case High Court case of Sibner Capital Limited v Neil David Martin Jarvis & Suzanne Jane Hughes [2022] EWHC 3273 (Ch) (link to judgment): What takes precedence between a general good faith clause and a clause allowing absolute discretion in certain actions? The High Court has ruled that, in a […]