Tag: Novations
Brexit – contractual dis-continuity
A question that has been ignored, until very recently, is how firms will deal with cross-border derivative contracts when the UK leaves the EU in March 2019. Leaving the single market without either EEA membership or a trade agreement covering financial services will result in complications for existing derivative contracts. With approximately £26 trillion of […]
Yet another Brexit article – life cycle events
Although we are reluctant to contribute to the now well-established industry of Brexit crystal ball-gazing, there are a number of documentation issues in which there is at least enough certainty to formulate the questions; definitive answers will attend the daily twists and turns of politics. These issues include: the future status of trade lifecycle events, […]
Hedge Accounting on Novation to CCP Saved?
Risk Magazine is reporting that transactions cleared voluntarily will continue to benefit for hedge accounting rules under International Accounting Standards Board (IASB) proposals. As discussed previously in this blog post, in its February 2013 exposure draft entitled “Novation of Derivatives and Continuation of Hedge Accounting”, the IASB had proposed that hedge accounting would be lost […]