Our Derivatives group assists clients in achieving a wide range of transaction-specific goals through the use of derivatives. The spectrum of derivatives ranges from commonplace swaps, forwards and options to uniquely-tailored innovative transactions. Key structured products utilizing derivatives include linked notes, investment funds with income-recharacterization, and equity monetizations.
We assist clients with all aspects of derivatives, including negotiations with counterparties, documentation and compliance procedures. We have particular expertise advising managers on the securities regulations applicable to the use of derivatives by public investment funds.
Some of the more current issues on which we frequently provide advice include:
- winding-up income recharacterization transactions following the March 2013 Federal Budget
- issues with the International Swaps and Derivatives Association (ISDA) Canadian representation letter
- proposed guidance on the use of derivatives by Ontario pension funds
The regulatory landscape for derivatives is undergoing rapid change as governments around the world implement measures to monitor for systemic risk following the last global financial crisis. We help clients to understand and prepare for these changes, such as:
- the over-the-counter (OTC) derivatives reporting obligations
- the proposed derivative dealer registration requirements
- the proposed centralized clearing of OTC derivatives
This is in addition to the existing Québec Derivatives Act, commodity futures and other legacy legislation in Canada.
Our approach is multi-disciplinary and draws expertise from our practices in Financial Institutions, Investment Products & Wealth Management, Energy, Mining, Pensions and Tax. We are a member of the International Swaps and Derivatives Association, Inc. (ISDA).
We regularly act for Canadian and international financial institutions, market intermediaries and end-users, including investment funds, energy companies and securitization vehicles.
- ISDA-based transactions
- Linked notes
- Tax-efficient structures