Equity derivatives are financial instruments whose value is based on underlying equity securities, such as stocks or stock market indices. They allow market participants to transfer risks associated with the underlying securities. In recent years their popularity has grown spectacularly: by the end of 2007, $10 trillion of equity derivative over-the-counter (OTC) contracts were outstanding, an increase of 39% on 2006. With the greatest volatility in equity markets seen in a generation, investors hedging themselves against or trading volatility, shareholders monetising holdings and corporates involved in M&A activity have been among those fuelling a boom in equity derivatives markets.
Equity Derivatives: Documenting and Understanding Equity Derivative Products examines the full spectrum of equity derivative transactions. This accessible forthcoming title explains each type of transaction, together with the documentation involved. In particular, the book analyses and guides the reader through the full suite of OTC, exchange-traded and structured equity derivative documentation, and provides a detailed guide to the 2002 ISDA Equity Derivatives Definitions. The book further contains detailed analysis of the regulatory issues affecting equity derivative products in the United Kingdom, France, Germany, Italy, Spain and the United States, and covers tax issues arising in the United Kingdom and United States.
Edited by Edmund Parker, head of derivatives at Mayer Brown, London and author of Credit Derivatives: Documenting and Understanding Credit Derivative Products, the publication includes chapters from leading experts at Allen & Overy, Clifford Chance, Credit Suisse, Freshfields Bruckhaus Deringer, Gide Loyrette Nouel, Simpson Thacher & Bartlett, Legance, Mayer Brown, Morrison & Forester and Uría & Menéndez.
Rezensionen / Stimmen
"A good primer for understanding equity derivative transactions and how they are documented. I'd recommend it to anyone serious about introducing themselves to the subject matter or merely refreshing their memory."
Kevin Funnell - Bank Lawyer's Blog
"The book serves both as an excellent text book for those that wish to learn about equity derivatives, as well as an excellent reference source for more experienced practitioners, and is therefore highly recommended."
Dean Kloner - Futures & Derivatives Law Report
Consulting Editor Edmund Parker is a partner at Mayer Brown's London office where he heads the derivatives practice. He advises complex OTC credit and equity derivatives, property derivatives, commodity derivatives (including emissions trading), and insurance and pension-linked derivative structures. He also advises on repackagings, as well as distress situations affecting derivatives. He has extensive experience in a wide variety of structured transactions, including collateralised fund obligations, cash and synthetic collateralised debt obligations, credit constant proportion portfolio insurance, the establishment of credit derivative product companies, and structured equity and commodity products. Mr Parker has written extensively on derivatives and related matters, including publishing as sole author the acclaimed Credit Derivatives: Documenting and Understanding Credit Derivative Products.
Table of contents Preface 5 Part I: Overview of equity derivatives Overview and introduction 7 to equity derivatives Edmund Parker Mayer Brown Equity assets underlying 39 equity derivatives Edmund Parker Marcin Perzanowski Mayer Brown Reasons for entering into 49 equity derivative transactions and values derived from equity derivative financial instruments Aaron McGarry Edmund Parker Mayer Brown Part II: Equity derivative financial instruments Types of over-the-counter 63 (OTC) equity derivative products Julian Barrow Richard Hart Freshfields Bruckhaus Deringer LLP Types of structured equity 85 products Peter Green Jeremy Jennings-Mares Morrison & Foerster LLP Exchange-traded equity 107 derivatives Dharini Collins Mayer Brown Part III: ISDA equity derivatives documentation The ISDA suite of equity 131 derivatives documentation Edmund Parker Marcin Perzanowski Mayer Brown Overview of the 2002 ISDA 175 EquityDerivatives Definitions Edmund Parker Marcin Perzanowski Mayer Brown Part IV: Corporate and regulatory aspects of equity derivatives in key jurisdictions Global trends in equity 233 derivatives regulation Alban Caillemer du Ferrage Qian Hu Gide Loyrette Nouel France 243 Alban Caillemer du Ferrage Gide Loyrette Nouel Germany 255 Marc Benzler Rainer Gallei Clifford Chance Partnerschaftsgesellschaft Italy 291 Andrea Giannelli Legance Studio Legale Associato Spain 309 Salvador Ruiz Bachs Uria Menendez United Kingdom 331 Tom Herbert Andrew Sulston Allen & Overy LLP United States 357 Joyce Y Xu Simpson Thacher & Bartlett LLP Part V: Tax aspects of equity derivatives in the United Kingdom and the United States UK tax aspects of equity 385 derivatives Ronald Grover David Haworth Freshfields Bruckhaus Deringer LLP US tax aspects of equity 401 derivatives David Chung Credit Suisse About the authors 433
