ARTICLE
5 September 2024

Capital Markets: Derivatives 2024: Law & Practice – England And Wales

KM
Katten Muchin Rosenman LLP

Contributor

Katten is a firm of first choice for clients seeking sophisticated, high-value legal services globally. Our nationally and internationally recognized practices include corporate, financial markets and funds, insolvency and restructuring, intellectual property, litigation, real estate, structured finance and securitization, transactional tax planning, private credit and private wealth.
The UK's regulatory framework affecting the derivatives markets and products is currently made up of a mixture of UK domestic and EU-derived rules and regulations.
United Kingdom Finance and Banking

The UK's regulatory framework affecting the derivatives markets and products is currently made up of a mixture of UK domestic and EU-derived rules and regulations. The key pieces of legislation and regulations that impact the UK derivatives markets include the following:

  • Financial Services and Markets Act 2000 (FSMA)
  • Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO)
  • European Market Infrastructure Regulation (EU EMIR)
  • The European Markets in Financial Instruments Directive II and Markets in Financial Instruments Regulation (EU MiFIR) (together, EU MiFID II)
  • Regulation on Wholesale Energy Market Integrity and Transparency (UK REMIT)

Derivatives can also fall within or be affected by a number of other legislative frameworks in the UK, including the Short Selling Regulation, Market Abuse Regulation, Benchmarks Regulation, Packaged Retail and Insurance-based Investment Products Regulation, Undertakings for Collective Investment in Transferable Securities (UCITS) Directive, Alternative Investment Fund Managers Directive and capital rules.

This section of the "Capital Markets: Derivatives 2024" Guide provides an overview of the derivatives markets in England and Wales, specifically historical and forward-looking trends; futures and options; swaps and security-based swaps; forwards; listed versus over-the-counter derivatives; asset classes; exemptions, non-derivative products and spot transactions; national regulators and their jurisdiction over clearing, mandatory trading, position limits, reporting, business conduct and commercial end-users; documentation issues for industry standards and master agreements, margins, other relevant agreements, clearing and opinions; and, regulation and enforcement trends.

"Capital Markets: Derivatives 2024: Law & Practice – England and Wales," Chambers and Partners, September 4, 2024

Additional Katten sections in the "Capital Markets: Derivatives 2024" Guide:

"Capital Markets: Derivatives 2024 – Global Overview," Chambers and Partners, September 4, 2024

"Capital Markets: Derivatives 2024: Trends & Developments – England and Wales," Chambers and Partners, September 4, 2024

Originally published by Chambers and Partners, 4 September 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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