A [[financial instrument]], feared in Nebraska as some kind of [[Financial weapons of mass destruction|WMD]], in the cradle of the Levant as a sort of Godless gambling contract, amongst commodity producers of the Midwest (other than that one fellow in Omaha) as a legitimate [[hedging]] activity, and for legions of patient [[negotiator|negotiators]] in London, New York, Hong Kong and the thriving satellite constellation of low-cost jurisdictions from Bangalore to Nashville, a steady, dreary, unglamorous means of keeping home fires stoked and food upon the table.
==[[Securities]]==
===[[Debt Capital Markets]]===
*[[Medium Term Note]] Programmes
*Stand Alone [[Eurobond]] Issuance
*[[Commercial Paper]]
**[[Euro Commercial Paper Programmes]]
**[[Asset-backed]] [[Commercial Paper]]
====Supporting Documentation====
*Legal Documents
**Constituting Instruments
**Agency Agreements
**Terms and Conditions
**Offfering Materials
**[[ICMA]] form of Final Terms
*Board Authorisation
*Side Letters, Agent Appointments and Dealer Confirmations
====Hedging====
Could be a [[swap]]<ref>Also, fondly, known as a [[sw-ŏp]], but ''never'' a [[sw-æp]]. [[Swap does not rhyme with crap|Swaps aren’t, and don’t rhyme with, crap]].</ref>, an [[option]] or a [[future]].
*Term Funding
*Basis Risk
====Offering and Resale====
=====Listing and Prospectus Directive=====
*Passporting and Home Regulators
*Listing Rules
*Regulated Stock Exchanges
**London Stock Exchange
**Irish Stock Exchange
**Luxembourg Stock Exchange
**other Stock Exchanges
*Non regulated market Stock Exchanges
**EuroMTF
**AIM
**Others
*ESMA-sponsored amendments to the Prospectus Directive
=====Selling Restrictions=====
Not, and especially not now, in light of the fabulous parallel regulation of the [[Securities Financing Transactions Regulation]], a [[stock loan]] or a [[repo]].
*Jurisdictional Selling Restrictions Library
*Jurisdictional Tax Disclosure
=====Retail Sales=====
*Retail Distribution
**Retail Cascades
**Prospectus Consents
*Packaged Retail investor Products (PRIPs)
*Key Investor Disclosure document (KID)
=====US registration=====
==Warning: boring stuff below this line==
*SEC Registration
Where do you start?
*Safe Harbours and Exemptions
:{{derivativecontractdefinition}}
**Regulation S
**Rule 144A
===[[Structured Securities]]===
:[[MiFID]] definition of [[derivative]] comes from the latter half (items (4) - (10)) of the definition of “[[Financial instrument - FCA Rulebook Term|Financial Instruments]]” set out in Section C of Annex I to [[MiFID]] as follows:
''These contracts are not necessarily traded under an ISDA framework but may will be traded according to Exchange rules or financial institutions' "Standard Terms of Business"''
*[[EFET]] - European Federation of Energy Traders Master Agreements (Power and Gas)
*[[IETA]] - International Emissions Trading Agreement
*[[SCOTA]] - Standard Coal Trading Agreement
===[[Prime Brokerage]]===
(in scope?)
==Derivative Transactions==
===Market Risk===
====Asset Class====
*[[Equity Derivatives]]
*[[Credit Derivatives]]
*[[Currency Derivatives]]
*[[Interest Rate Derivatives]]
*[[Commodity Derivatives]]
====Market Disruption====
====Gap Risk=====
===Credit Risk===
===Collateral and Credit Support===
====Collateral ====
=====Overview=====
*Treasury, Liquidity implications of Collateral posting and recieving
*Rehypothecation and Client Assets protection
=====Credit Support Annex=====
*1994 NY Pledge form of CSA
*1995 english Law Title Transfer
=====Eligible Collateral=====
*Cash
*Sovereign Bonds
*Corporate Bonds
*Other Assets
**Letters of Credit
====Non-Collateral Credit Support====
*Guarantees
*"Liens" and Security Interests
====Intercreditors and Loan financing====
==Regulatory Environment==
Implications for derivatives and capital markets transactions of regulatory initiatives. ''This should cross reference where appropriate the Financial Services Module''
(4) options, futures, swaps, forwards and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
(5) options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event;
(10) options, futures, swaps, forwards and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, OTF, or an MTF;
(11) Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme).
Derivative /dɪˈrɪvətɪv/ (n.)
A financial instrument, feared in Nebraska as some kind of WMD, in the cradle of the Levant as a sort of Godless gambling contract, amongst commodity producers of the Midwest (other than that one fellow in Omaha) as a legitimate hedging activity, and for legions of patient negotiators in London, New York, Hong Kong and the thriving satellite constellation of low-cost jurisdictions from Bangalore to Nashville, a steady, dreary, unglamorous means of keeping home fires stoked and food upon the table.
MiFID definition of derivative comes from the latter half (items (4) - (10)) of the definition of “Financial Instruments” set out in Section C of Annex I to MiFID as follows:
