LCDS meaning

The breadth of the European Commission’s (Commission) authority to pursue antitrust breaches by undertakings based outside the EEA, for conduct taking place beyond its borders, has been hotly debated, especially after the Commission’s cartel decisions in the LCDs and CRTs matters. The question of extraterritorial scope also features in unilateral conduct, as shown by Case C-413/14 Intel v Commission. Although the EU treaties do not spell out the territorial limits of EU competition law, the Court of Justice has over time crafted tests to assess whether, in a given instance, the Commission has the requisite jurisdiction... Extraterritorial jurisdiction Single economic entity: permits the Commission to hold a parent to account where its EEA-based subsidiary engages in unlawful conduct. Implementation: considers the degree to which the anti-competitive behaviour was carried out within the EEA. Qualified effects: requires that the conduct was capable of producing substantial, immediate and foreseeable effects in the EEA. Single economic entity In Case C-48/69 ICI v...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

What does this Practice Note cover? This Practice Note outlines the predominant and widely used form of credit derivative, the credit default swap (CDS). It also describes the reasons participants use CDS, the manner in which a CDS is documented, and the way CDS are cleared. In addition, it identifies a number of particular CDS structures, including CDS linked to asset-backed securities (CDS on ABS), basket CDS (covering both portfolio CDS and Nth to default CDS), loan-only CDS (LCDS) and collateralised debt obligations (CDOs). What is a CDS transaction? The most prevalent credit derivative is a credit default swap (CDS). It is an agreement between two parties that hinges on the credit quality of a third party, called the reference entity. That reference entity might be a corporate, a sovereign, a municipality or a comparable organisation, and does not have to be a party to, or even cognisant of, the deal. Indeed, it is improbable the reference entity will be aware of the arrangement. The protection buyer...