Derivatives and Trading

We represent hedge funds, corporate treasuries, financial institutions, managed account platforms, asset managers and high-net-worth individuals in structuring, negotiating and executing complex and bespoke derivative instruments.

We advise on a wide range of products including swaps, options, forwards and repos, covering interest rate, fixed income, currency, commodity, equity, credit, basket and index underliers. The team routinely advises on matters such as:

prime brokerage and issues around rehypothecation and segregation;
custody and collateral;
securities lending and margin financing matters;
repos;
structured products;
exchange traded derivatives;
central clearing including OTC clearing under Dodd-Frank and EMIR;
cash equities and cash bond trading under broker terms of business; and
electronic trading arrangements.

Our team works alongside our specialist lawyers in financial services, regulatory, capital markets, tax and dispute resolution and are able to advise on both the day-to-day trading requirements of our clients, and the most complex derivative and structured product transactions in both transactional and contentious roles.

We have a global client base; we act for managers in London, New York, Greenwich, Hong Kong and have daily experience negotiating for these clients with the London and New York offices of the leading US and European banks and broker dealers.

Recent work

ADR Financing

Advising a multinational commodities trading firm in relation to financing the acquisition of ADRs representing a significant stake in a Russian company, structured through equity derivatives.

Deal-contingent forward

Advising a private equity fund in relation to a deal-contingent forward in respect of completion payment obligations in Polish Zloty under a Polish buy-out.

Managed accounts

Advising five managed account platforms, including two of the largest, on their trading documentation.

Multi-billion euro equity swap

Advising a continental bidder in relation to a multi-billion euro equity total return swap in respect of a proposed takeover target, as part of a €40bn takeover offer.

Securities lending and custody arrangements

Advising funds in relation to their securities lending and custody arrangements.

Trading arrangements

Advising over 40 leading hedge funds in all the major jurisdictions in relation to their derivative trading arrangements under ISDA, GMRA, prime broker agreements and many others.

Transfer of energy trading contracts

Advising a leading European utilities company in relation to the transfer of its energy trading contracts to another jurisdiction.

UK equity swap

Advising the investment vehicle of a high-net-worth individual in relation to a £100m UK equity swap.

See all

See all contacts

Will Sykes

Partner

+44 (0)20 7849 2294 Email Will

Christopher Acton

Partner

+44 (0)20 7849 2543 Email Christopher

In depth

What people are saying

"Macfarlanes are market leaders in prime brokerage and trading advice for hedge funds, they are responsive and sensible, they have real depth of experience from both buy-side and sell-side perspectives"

Chambers UK 2019