Derivatives carry the potential to drastically increase or drastically decrease initial investments, depending on the underlying assets’ price movements. Derivatives investing is for the experienced investor or the less experienced investor willing to do some research. One advantage is that an investor can get into the action with little expenditure of money but should be prepared to lose some, if not all, of it, should prices swing the wrong way.
International Swaps and Derivatives Association (ISDA)
Transitioning from the London Interbank Offered Rate to the risk-free rate alternatives such as SONIA and SOFR was at one time a recommendation but is becoming a requirement, as the FCA’s LIBOR support will cease at the end of 2021. Transitions spell challenge, and this is true of the bond market as it faces LIBOR’s demise. What are some potential solutions that bond issuers should consider, especially for legacy bonds?
Financial services firms in the UK have more questions than answers about how Brexit will affect their operations. The uncertainty extends to London’s position as a global centre for dispute resolution, as it is possible that English court decisions will not be automatically enforceable in the EU. As the case study in this article demonstrates, English courts will endure as the best option for fast and fair resolution of international cases.