Market manipulation and mis-selling scandals have called into question the integrity of derivative markets and the basis of relationships between counterparties.

The impact of long dated interest rate hedging, coupled with termination rights, has been catastrophic for borrowers in many sectors, as has the widespread use of LOBO’s in the Local Authority sector. Accommodating swap mark to market positions and managing breaks or extensions has become the most important factor in many financings.

TradeRisks is an independent firm that is unique in its combination of derivative and legal expertise. We work with clients to unlock value or mitigate costs from existing financial portfolios that include derivatives and derivative-related products such as LOBOs. Our capabilities include:

  • Negotiating enhanced restructuring and exits from hedging transactions: TradeRisks has negotiated restructuring or termination of >£5bn of interest rate and inflation swaps, including many long dated and exotic instruments. In doing so we have challenged valuation and execution methodology and negotiated very substantial discounts.
  • Calculating appropriate and accurate breakage costs for pre-payment of derivative structures allowing for exits at a dramatically reduced cost.
  • Breaking down complex derivative and debt restructurings into their component parts to reveal true cost vs opaque blended costs.
  • Negotiating exits from structures at attractive prices based on legal arguments related to misrepresentation and rescission.
  • Exploring legal redress relating to market abuse: with recent LIBOR, FX and ISDAFix scandals and the losses incurred by corporates as a result, the need for specialist legal as well as financial advice in relation to derivative re-structuring and resolution is essential. Through our in-house and affiliated lawyers TradeRisks provides dedicated and integrated legal expertise to ensure we can lead all possible angles to derivative negotiations.
  • Reviewing historic trades: TradeRisks owns and analyses a vast database of historic swap market pricing information to allow instantaneous and precise review of historic trades on a minute-by-minute basis.

Few companies are able to provide truly integrated expert advice across finance and legal in relation to complex derivatives. TradeRisks’ unique experience enables us to provide clients with a comprehensive and immediate service when exploring possible litigation or mediation solutions for losses incurred relating to derivative transactions.