Feature
550
Go to page
of
55
Digitised trading and settlement: Exchange 4.0
In this article, the authors consider the benefits of, and legal issues with, Exchange 4.0, a model that addresses current questions about how distributed ledger technology (DLT) can change market infrastructure, clearing, settlement and custody systems.
25 March 2024Reform of the law on deeds: options for the Law Commission
This article deals with the proposals of the City of London Law Society (CLLS) Financial Law Committee to the Law Commission in connection with their review of the law on deeds, likely to be one of the projects in their 14th Programme of Law Reform. Proposals focus on resolving a number of issues related to the execution of deeds, including in the form of electronic documents, as well as resolution of some conflict of laws issues, clarification of when a deed is required and of the status of a “failed” deed.
25 March 2024Pre-hedging versus front-running: six of one, and half a dozen of the other?
Institutions which provide market liquidity, such as banks, are in possession of very valuable confidential client data – their trading intentions. Trading intentions can generate revenue for the bank with little or no risk. This requires the bank to trade for its own account using the client’s confidential information before it trades for the client. This behaviour is generally given two labels: “front-running”, which is considered to be illegitimate, and “trading-ahead”, which is thought to be legitimate. However, their effects are often identical which should imply that their legitimacy should also be the same.
20 March 2024Supervisory tone sharpens further following ECB’s conclusions on its Desk Mapping Review
In this article, Dr Michael Huertas considers the impact on non-EU headquartered banking entities of the findings of the ECB-SSM’s Desk Mapping Review (Review). The Review assesses the governance and risk management capabilities of the EU operations of such non-EU headquartered entities.
20 March 2024Protection of securities under custody in Spain
There is no scope for trusts under current Spanish law; they neither exist nor are recognised in the jurisdiction. Incorporating them into Spanish law would require a substantial transformation of Spanish property law. At the same time, it is not even truly clear whether trusts are indeed a bulletproof solution in the context of safeguarding securities under custody. In any case, Spanish law provides for a set of measures designed to safeguard securities held under custody, particularly traded securities held under custody by an entity participating in Iberclear, the Spanish central securities depository.
20 March 2024Blockchain interoperability: connecting decentralised infrastructure for traditional finance
In this article, Tom Marshall explains the meaning of interoperability in the context of blockchains, existing infrastructure and why and how traditional finance is getting involved.
20 March 2024Cryptoassets as property under English Law: surveying the present lie of the land
In this article, Amy Held draws attention to two ways in which fundamental principles of English property law are being distorted in the present discourse on crytpoassets. First, English law is not really prescriptive as to what “things” fall within the scope of property law or “can be property”, but, rather, is concerned with rights in relation to things. The statement, therefore, that cryptoassets “are property” lacks any real meaning. Second, English law has no real concept of “ownership” as distinct from “possession”. Given that English law tends to focus on the latter, it remains unclear what it means for anyone to assert that they are the “owner” of a cryptoasset, how “ownership” is proved and established, and how the right of “ownership” is vindicated in a dispute.
20 March 2024Financial collateral arrangements in the digital asset world
This article covers three issues: (i) which kinds of digital assets (arguably) fall within the Financial Collateral Arrangements (No. 2) Regulations 2003 (FCARs); (ii) what is likely to constitute “possession or control” of a digital asset for the purpose of the FCARs (where a security financial collateral arrangement is involved); and (iii) whether the FCAR regime is appropriate in the digital asset context (and whether there needs to be a separate regime that applies specifically to digital assets).
20 March 2024Waiving goodbye to termination rights in default scenario negotiations
A key weapon in the lender’s arsenal is the default provisions contained in a loan agreement and the actions that the lender may take upon the occurrence of an event of default. In Lombard North Central plc v European Skyjets Limited [2022] EWHC 728 (QB), Mr Justice Foxton considered whether certain events of default had occurred and whether Lombard had validly terminated the loan agreement so as to enable it to enforce its security, namely Skyjets’ aircraft. The judge’s legal analysis provides a useful recap of the legal principles. This article focusses on the doctrine of waiver by election and some practical considerations for lenders in a default scenario.
20 March 2024Legal conundrums: taking security from English limited partnerships
Unlike an English private limited company incorporated under the Companies Act 2006, an English limited partnership (LP) is not a legal entity. In practice, this can create confusion and risk when LPs create and register security. Stephan Smoktunowicz examines some of the key considerations when taking security from LPs including the grey areas which surround registration and how to approach them more safely.
20 March 2024
Go to page
of
55
