FINANCIAL MARKETS

OPINIONS AND REPORTS TO BE DOWNLOADED

. ISDA Framework Contract Report 2002 under French law

Working Group chaired by Alban Caillemer du Ferrage

05/11/20 RA35A - Report ➡ Download

In June 2018, ISDA published a version of its 2002 Framework Contract to provide all market participants in the EU with the contractual instrument to resolve the loss of benefit of the European Judicial Cooperation System for court decisions handed down by English courts. Two years after this publication, the HCJP takes stock of the use of this new framework agreement and wishes to recall the strengths of French law and shed light on the solutions that it offers users of the Framework Agreement under French law for their transactions with European counterparties.

. The legal feasibility of developing a clearing offer for interest rate derivatives in Paris

Working Group chaired by Alban Caillemer du Ferrage

17/10/18 AV08A - Opinion ➡ Download

The interest rate derivatives market in the European Union remains dominated by the United Kingdom, whose exit from the European Union will inevitably bring about profound changes. The HCJP is studying the legal feasibility of repatriating transactions on interest rate derivatives cleared today in London (I) to Paris. There is also the question of the possibility of promoting the use of French law in interest rate derivatives transactions and of requiring recourse to a French court in disputes relating to the clearing of interest rate derivatives (II).

. Feasibility report on the establishment by the Union legislator of a forebearance procedure involving the European Securities and Markets Authority

Working Group chaired by Gérard Rameix

01/10/18 RA24A - Report ➡ Download

The internal market in financial services is based on secondary legislation whose production has been catalyzed by the financial crisis. Some Level 1 texts (Directives and Regulations of the European Parliament and of the Council) are complemented by Level 2 texts (Commission Directives and Regulations), which are made explicit by Level 3 texts (European Supervisory Authorities Guidelines), which pose practical difficulties and necessitate the introduction of a “forebearance” mechanism (“no-action letters”). The HCJP states in this report that the implementation of this reform nevertheless involves meeting a few constitutional requirements and envisages a number of scenarios.

. Notice on issues of SFTR and re-use

Working Group chaired by Michel Prada

19/03/15 AV02A - Opinion ➡ Download

The HCJP is considering Article 15 of the draft Security Financing Transaction Regulation (SFTR) on the way a creditor may exercise the right to use securities provided as collateral. This draft regulation concerns “rehypothecation”, defined as “the use of financial instruments by a counterparty that receives them as collateral, in its own name and for its own account or on behalf of another counterparty”. The report therefore questions the scope and modalities of the draft SFTR regulation, with the aim of avoiding confusion in national financial systems and thus improving investor protection.