CDS meaning

STOP PRESS: Short Selling Regulations 2025 SI 2025/29 was made and published on 13 January 2025, together with an Explanatory Memorandum. This instrument replaces the assimilated regime and establishes a new statutory framework for UK short selling, creating designated activities and granting the Financial Conduct Authority (FCA) rulemaking powers for those activities, plus powers to intervene in exceptional situations. It reiterates that firms must notify the FCA when net short positions exceed 0.2% of issued share capital; while HM Treasury keeps the ability to adjust this level, the FCA may mandate notifications at a different threshold in exceptional circumstances. Some provisions took effect on 14 January 2025, with the remainder commencing on the date the revocation of the UK Short Selling Regulation takes effect under the Financial Services and Markets Act 2023. For a summary of the background to the new UK regime, see Practice Note: The UK Short Selling Regulation [Archived]. Regulation (EU) 236/2012 (the EU Short Selling Regulation) applies in the EU. In the UK, the assimilated...

This checklist sets out the reporting obligations under the UK’s new short selling regime. For more detail, see Practice Note: The new UK short selling regime. Background The Short Selling Regulations 2025 (SI 2025/29) replace the assimilated UK Short Selling Regulation and introduce a new statutory framework for regulating short selling in the UK. The regime: Defines designated activities for short selling within FSMA 2000 Confers broad rule-making powers on the Financial Conduct Authority (FCA) Maintains core transparency obligations while giving the FCA greater flexibility Equips the FCA with intervention powers in exceptional circumstances The FCA is consulting on proposed rules and guidance, with a new short selling sourcebook expected in April 2026. When does the UK short selling regime apply? It applies to market participants engaging in short selling of shares admitted to trading or traded on a UK trading venue, and to short selling of UK sovereign debt, associated credit default swaps (CDS) and related...

In this issue: Banking and Finance case round-up Lending Security Debt capital markets Derivatives Regulation for derivatives lawyers Securitisation and structured products Restructuring Technology in banking & finance transactions Regulation for banking lawyers Scotland Daily and weekly news alerts New and updated content Useful information Banking and Finance case round-up Banking & Finance—November 2024 case round-up For a summary of the cases we flagged in Banking & Finance during October 2024, refer to News Analysis: Banking & Finance—November 2024 case round-up. Lending Re KRF Services (UK) Ltd [2024] EWHC 2978 (Ch) The judgment addressed a High Court application for an administration order, heard in that court, and centred on two key points of interest: (i) whether the sole director’s resolution to seek an administration order was effective; and (ii) the effect of the sanctions regime. On the first question, the court examined the company’s unamended Model...

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In this issue: Commercial Competition Corporate Data protection and cybersecurity Free movement, immigration and employment Financial services Energy Environment Life sciences Regulatory TMT International trade Daily and weekly news alerts New and updated content Trackers Commercial Commission consults on evaluation of market surveillance regulation The European Commission has launched a consultation to assess and, if needed, update the Market Surveillance Regulation (EU) 2019/1020. It aims to strengthen the operation of the single market by boosting compliance with EU product harmonisation rules, with any amendments scheduled for Commission adoption in Q3 2026. The consultation closes on 4 February 2026. See: LNB News 12/11/2025 22. Commission consults on New Legislative Framework revision The Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW H4) has opened a consultation to underpin the revamp of the New Legislative Framework (NLF) governing product law, seeking to capture stakeholder views on...

The doctrine of contractual estoppel has been employed in a number of varied commercial scenarios, but most notably and particularly in more recent times in disputes within the financial sector. This Practice Note identifies several key cases since the 2006 Court of Appeal decision in Peekay v ANZ Banking Group. It should be carefully read in conjunction with Practice Note: Contractual estoppel. Peekay v ANZ Banking Group (2006) The Court of Appeal’s ruling in Peekay v ANZ Banking Group is widely regarded as the foremost and controlling authority on contractual estoppel. The claimant executed a ‘Risk Disclosure Statement’ for investments arranged through the defendant bank, recording an acknowledgement that the signatory fully appreciated the nature of the transaction and the contractual relationship then being entered into by it at the time. The Court of Appeal held that, in light of this, the claimant could not later contend or maintain that it had been induced to contract by a misrepresentation as to the nature of the investments it was...

ARCHIVED : This Practice Note has been archived and is no longer maintained. STOP PRESS: The Short Selling Regulations 2025 were made and published on 13 January 2025, together with an explanatory memorandum. These regulations replace the assimilated UK Short Selling Regulation and introduce a new legislative framework governing short selling in the UK, defining designated activities and empowering the Financial Conduct Authority (FCA) to set rules for those activities, alongside powers to act in exceptional circumstances. Certain parts commenced on 14 January 2025, with the remainder starting on the date the revocation of the UK Short Selling Regulation takes effect under FSMA 2023. The UK’s new regime removes obligations on investors when entering short positions in sovereign debt or sovereign credit default swaps (CDS) and the linked reporting requirements, while keeping sovereign debt and sovereign CDS within the FCA’s emergency intervention powers on short selling...

Who are bondholders? Bondholders, sometimes referred to as noteholders, have typically put capital into a company’s most junior—and therefore risky—debt. In a distressed scenario, they will often form a pressure group, coming together to seek recovery from a restructuring by presenting a unified position to the debtor’s advisers and other stakeholders, including senior lenders, as a collective. For further reading, see Practice Note: Bonds and notes. Bondholders will frequently sit within a complex capital structure. The bondholders’ committee The bondholders’ committee is usually organised by the indenture trustee for the bonds or by a lawyer specialising in representing the interests of junior creditors. The committee can also be known as the: steering committee co-ordinating committee A committee is formed as part of a restructuring process rather than as a formal insolvency process. The formation of the committee...