Derivatives and Structured Products
SNR Denton has extensive experience in a wide
range of derivatives and structured products, from highly tailored,
onetime structures, to high-volume “plain vanilla” swaps. We
have acquired this expertise in a wide variety of transactions and
from all perspectives – representing swap dealers, hedge funds and
other end-users, investors, issuers and underwriters.
We excel at helping clients understand and
negotiate the best deal possible, no matter how complex or
innovative the deal structure might be. We have the expertise
to advise on the tax, insolvency, securities, commodities, banking,
ERISA and investment company laws affecting these
transactions. Our high level of commercial awareness and
industry knowledge gives us the ability to find solutions that get
the deal done at a cost that matches the job. Our clients
benefit from our expertise in the legal mechanics of trading,
financing and resolving the disputes involved in complex
transactions. What differentiates us from other law firms is
our breadth and depth of industry knowledge and risk management
practices.
We have an in-depth knowledge of all kinds of
derivatives and structured products, whether relating to interest
rates, currencies, credit, equities (including indices and funds),
debt, energy or other commodities, or exotics such as weather and
property. For our clients who have in-house lawyers to staff
most of their transactions, we handle documentation overflows cost
effectively and save our clients the time and expense of adding
permanent headcount.
We understand volatility, both in the pricing
of derivatives and the daily swings in the trading of those
derivatives and the underlying products, and we draft documents to
safeguard our clients’ interests. We have extensive
experience in the structuring and documentation of transactions
involving derivatives, including swaps in securitization
transactions and other investment vehicles, futures, options,
collars and participation agreements. Representative
transactions include total return swaps on debt and equity
securities, and currency, commodity and interest rate hedges using
swaps and other derivatives. In the course of these
representations, we have negotiated hundreds of ISDA master
agreements and other industry standard agreements. In
addition to assisting clients with ISDA documentation, we also
regularly work with netting and collateral arrangements, including
cross product and cross-affiliate netting issues, special purpose
vehicles (SPVs), bankruptcy concerns and innovative risk management
techniques.
For our investment fund clients, we have
negotiated numerous master derivatives agreements, such as ISDA
agreements, prime brokerage agreements, master repurchase
agreements and securities lending agreements, as well as principal
protected hedge fund securities and fund investments in structured
products.
In the current distressed market environment,
we regularly advise clients whose derivatives are not performing as
originally expected. In this context we have advised on
collateralization and termination provisions, as well as on the
occurrence of credit and other material events under credit default
swaps, total return swaps and hedges relating to structured
products.
We are experienced in both OTC and exchange-traded products, as
well as in clearing arrangements. We also have experience
advising clients in connection with the development of exchanges
and electronic trading systems and on the use of new technologies
for derivatives-related activities.
Areas of Focus:
- Interest rate and FX
derivatives
- Credit
derivatives
- Islamic
products
- Energy and other
commodity derivatives
- Equity derivatives,
including repo/stock lending
- Complex finance, credit and fund-linked
structured products