The Law on Financial Derivatives
By: Alastair Hudson
"This fifth edition of The Law on Financial Derivatives has been almost completely re-written since the last edition in 2006. It continues to present a comprehensive analysis of the substantive law of England and Wales and of financial regulation in general as they affect financial derivatives, together with a detailed analysis of the standard market documentation of financial derivatives. Since the last edition there have been approximately 5,000 pages of case law dealing with financial derivatives, a large number of significant cases dealing with finance law more generally, an entirely new tax code governing derivatives contracts, and of course a seismic change in the public policy approach to the regulation of derivatives markets. New chapters dealing in detail with the regulatory developments since the last edition have been added to this book. Of most significance, however, for many readers will be the greatly expanded and reorganised chapters on the documentation issues with financial derivatives."--Preface.
AI Overview
"The Law on Financial Derivatives" by Alastair Hudson is a comprehensive legal text that provides an extensive analysis and explanation of the legal and regulatory principles underlying over-the-counter (OTC) derivatives in the UK. Here is a detailed overview of the book:
Key Themes
- Legal and Regulatory Principles: The book covers the legal and regulatory frameworks governing OTC derivatives, including contract law, tort law, trusts, and private international law.
- Financial Derivatives Markets: It examines how these legal principles relate to the day-to-day practice of financial derivatives markets and the completion of standard market contracts.
- Regulatory Developments: The book discusses the proposals for the regulation of derivatives in both the EU and the USA, reflecting the evolving regulatory landscape.
- ISDA Master Agreement: It provides a full analysis of the ISDA Master Agreement, which is a crucial document in the derivatives industry, and recent cases that have cast doubt on its effectiveness.
Plot Summary
The book does not have a narrative plot but rather serves as a reference guide for legal professionals and students. It offers both concise guidance on basic issues and in-depth analysis of complex topics in the field of financial derivatives. The text is structured to provide readers with all the information needed to advise clients confidently on matters related to OTC derivatives.
Critical Reception
The book has been noted for its utility in teaching and learning commercial law. While it is not described as a particularly fluid or engaging text, it is recognized as valuable teaching material due to its comprehensive coverage of the subject matter. The 5th edition, published in 2012, was particularly noted for its thorough analysis of the legal principles underlying OTC derivatives and its coverage of the litigation arising from the collapse of Lehman Brothers and the credit crunch.
Editions
There have been multiple editions of the book:
- 5th Edition (2012): This edition covered all the litigation arising from the collapse of Lehman Brothers and the credit crunch, as well as proposals for the regulation of derivatives in the EU and the USA.
- 6th Edition (2017): This edition continued to provide an extensive analysis of the legal and regulatory principles, with a focus on recent developments and cases.
In summary, "The Law on Financial Derivatives" by Alastair Hudson is a seminal work in the field of financial law, offering a detailed and comprehensive guide to the legal and regulatory aspects of OTC derivatives. Its critical reception highlights its value as a teaching tool and reference guide for legal professionals.