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Derivatives, Netting and Collateral

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Expertise

"Notable strength in derivatives."
Chambers Europe

Matheson’s dedicated derivatives lawyers advise Irish investment entities, financial institutions and corporates entering into ISDA master agreements, securities lending transactions, repo transactions and collateral arrangements.  We also advise in relation to Irish corporates entering into interest rate and currency OTC swap transactions as well as acting for investment entities entering into credit derivative transactions as part of complex structured finance transactions.

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 Derivatives, Netting and Collateral team has extensive experience advising on the regulation of derivatives transactions (with a focus on the European Markets Infrastructure Regulation (EMIR)), the application of the Financial Collateral Directive, and the operation of netting and set-off in Ireland.  The team frequently provides 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 team also supports clients with the management of derivatives contract negotiations and multi-jurisdictional collateral and netting enforceability questionnaires and has an extensive network of contacts with counsel in other jurisdictions to assist with such projects.

Our Team

Experience Highlights

Representative transactions include:

  • 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 Irish corporates and funds in relation to derivatives trades, repurchase agreements and securities lending agreements entered into with investment banks.
  • Advising on the application of EMIR to Irish SPVs, funds, pension schemes and corporates.
  • Advising banks and borrowers on interest rate and currency hedging documentation linked to facility 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.