Netting meaning

In this issue: UK, EU and international regulators and bodies Authorisation, approval and supervision Operational resilience Financial crime and sanctions Consumer protection Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Packaged Retail and Insurance-based Investment Products (PRIIPs) Dispute resolution for financial services lawyers Regulation of derivatives Sustainable finance and ESG Investment funds and asset management UK MiFID II EU MiFID II Payment services and systems Fintech and cryptoassets Regulation of AI in FS LexTalk®Financial Services: a Lexis®Nexis community Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary Latest Q&As No Weekly Highlights on 24 April 2025 UK, EU and international regulators and bodies FCA announces first international presence in US and Asia-Pacific regions The Financial Conduct Authority (FCA) has unveiled its...

In this issue: Sustainable finance and ESG round–up Lending Security Sustainable finance Debt capital markets Derivatives Structured products and securitisation Regulation for derivatives lawyers Restructuring Daily and weekly news alerts New and updated content Useful information Sustainable finance and ESG round–up Sustainable finance and ESG weekly round–up Sustainable finance and ESG round–up Sustainable finance and ESG weekly round–up For a summary of this week’s Sustainable finance and ESG developments, see: Sustainable finance and ESG weekly round–up—18 April 2024. Lending LMA publishes guidance on primary delayed settlement compensation The Loan Market Association (LMA) has issued guidance on primary delayed settlement compensation, setting out a suggested timetable for stages in the syndication process and embedding fault-based delayed settlement compensation. The note aims to reconcile the differing priorities of stakeholders involved in syndication. See: LNB News 17/04/2024 68. Source: LMA issues Primary Delayed Settlement Compensation Guidelines to promote efficiency...

In this issue: Guarantees Sustainable finance Debt capital markets Derivatives No Weekly Highlights on 24 April 2025 Daily and weekly news alerts New and updated content Useful information Guarantees Appealing guarantees (Jones v City Electrical Factors Ltd) The High Court dismissed an appeal from a County Court judgment that held a guarantor personally responsible for debts of about £190,000. In doing so, the court clarified when a ‘conditional payment obligation’ can amount to a ‘liquidated sum’, how such a liability engages section 267 of the Insolvency Act 1986, and the broader approach to construing commercial contract terms. This ruling, together with its analysis, is of clear significance for directors, liquidators and legal practitioners dealing with the drafting of guarantees and the robust enforcement of personal guarantees. For further insight, see News Analysis: Appealing guarantees (Jones v City Electrical Factors Ltd), by Stephen Alexander and Benjamin Meggitt-Smith of Mourant Ozannes (Jersey) LLP...

What does this Practice Note cover? This Practice Note outlines the principal provisions that apply to both the 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the 1992 Agreement) and the 2002 ISDA Master Agreement (the 2002 Agreement), together with their accompanying schedules. Unless indicated otherwise, any reference here to the master agreements (the ISDA master agreement) should be read as a reference to both the 1992 and 2002 Agreements. For a comparison of the two forms, see Practice Note: ISDA documentation—comparison of the 1992 and 2002 master agreements; for the broader ISDA documentation framework, see Practice Note: Derivatives—ISDA documentation framework. The key concepts underpinning the ISDA master agreement The ISDA master agreement rests on three core concepts, outlined briefly below: single agreement flawed asset close-out netting Single agreement Under ISDA’s documentation architecture, every derivative transaction between a pair of counterparties is captured under one overarching agreement (implemented through multiple layers of documentation), as provided in Section 1(c) of the...

Terminating a derivative under an ISDA Master Agreement When ending a derivatives contract documented under an ISDA Master Agreement, it is vital to follow the termination provisions exactly as drafted. Any misstep may mean the termination is not properly effected and could be invalid. Section 6 (Early Termination) details the outcomes that follow once an Event of Default or a Termination Event—each described in Section 5 (Events of Default and Termination Events)—has occurred. Put simply, an Event of Default involves fault attributable to a party, while a Termination Event usually arises without blame or beyond a party’s control. Section 6 also explains how the close-out netting mechanism operates after an Event of Default or Termination Event. For more detail, see Practice Notes: Scope of the ISDA Master Agreement part 4—Section 5 (Events of Default and Termination Events) and Scope of the ISDA Master Agreement part 5—Section 6 (Early Termination). Termination events...

The medical specialty focused on diagnosing and treating cancer is oncology. Handling oncology clinical negligence claims requires an understanding of cancer’s nature, its many forms, symptoms and treatments, diagnostic methods, and the limits of what diagnosis and intervention can achieve. The timing of both actual care and the hypothetical non‑negligent treatment in the counter‑factual scenario is crucial to causation and injury. Choosing an expert is not always straightforward. These cases also demand careful management of a claimant’s expectations from the outset. Sometimes a decision is needed between seeking damages for a living claimant or for the estate or dependants of someone who has died. This Practice Note therefore outlines the essentials: what cancer is, how and when it is identified and treated, the limitations on treatments, and the applicable case law. What is cancer? Cancer develops when cells in the body divide faster than they should, forming a lump or tumour. Such tumours can be benign or malignant. There are more than 200 different cancers, including breast, lung,...

This Deed is executed on [ insert day and month ] 20[ insert year ]. Parties [ insert name of Company ], a company incorporated in England and Wales with registered number [ insert company number ], with its registered office situated at [ insert address ] (the Company); and [ insert name of lender ], of [ insert address ] (the Bank). Background Under the Facility Agreement, the Company owes obligations and liabilities to the Bank. [ The Company also has funds standing to the credit of the Deposit Account [ s ] . ] In consideration of the Bank providing, or continuing to provide, the Facility to the Company, the Company has agreed to enter into this Deed...