Nick May , Partner
Nick is a Partner in the Herbert Smith Freehills finance practice, where he focuses on derivatives and structured finance work. Nick acts for a broad spectrum of clients in the derivatives field, including on both OTC and exchange traded derivatives. His clients in this area include financial institutions, corporates, funds and energy companies. He advises on a broad range of products including commodity (including energy derivatives such as gas, oil and emissions products), interest rate, currency and equity derivatives.
Practice Area
Panel
- Contributing Author
Qualified Year
- 2006
Education
- Nottingham Law School (Post Graduate Degree in Law and Legal Practice Course)
- Edinburgh University (MA, History)
1 Contributions by Nick May
PRACTICE NOTES
UK inflation derivatives: ISDA documentation, product types, collateral and clearing, index disruption fallbacks, LIBOR transition, and RPI reform implications
What does this Practice Note cover?
Inflation derivatives serve as a key risk management tool, enabling participants to hedge effectively against fluctuations in inflation rates. The market is sizeable, well established and dates back to its earliest forms in the early 1980s. In 2014, the International Swaps and Derivatives Association (ISDA) estimated the global non‑cleared inflation derivatives market at around US$3tn. In recent years, pronounced volatility and rising inflation across several major regions, including the UK, have drawn renewed attention to these instruments. This Practice Note summarises:
what inflation derivatives are
who uses inflation derivatives
documentation
product types, and
future developments
What are inflation derivatives?
An inflation derivative is a financial contract used to pass the risk, or the potential benefits, of movements in inflation from one counterparty to another. These instruments trade both over‑the‑counter (OTC) and on exchanges; this Practice Note focuses on the OTC market. Inflation‑linked payments under an inflation derivative are calculated by reference to an inflation index...
Banking & Finance
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