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The English courts' view of financial derivatives

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dc.contributor.author Lee, Hock Beng
dc.date.accessioned 2017-05-23T00:12:31Z
dc.date.accessioned 2022-07-11T21:27:52Z
dc.date.available 2017-05-23T00:12:31Z
dc.date.available 2022-07-11T21:27:52Z
dc.date.copyright 2016
dc.date.issued 2016
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/20203
dc.description.abstract In 1997 the International Swaps and Derivatives Association (ISDA) sought legal opinion from an English barrister, Robin Potts QC, on whether a financial transaction known as credit default swap (CDS) was likened to be an insurance or wager. His opinion was it is neither insurance nor wager. The concern of ISDA is telling as it bespeaks the ambiguity of the purpose of CDS and derivative transactions in general - whether they are designed for hedging or speculation. But the predominant concern is their speculative nature. If their sole purpose is for speculation, they are opened to the charge that their purpose is wagering. It is inevitable that such a legal problem would find its way to the courts for determination. In this paper I shall consider the decisions of the English courts on derivatives based on some of the decided cases and discuss the implications of the decisions on the subject. Interestingly, also drawing on the common law courts for an answer on the subject is Lynn Stout. Her view is that the common law rule against contracts for differences is the most prudent way to distinguish hedging from speculation in derivatives. I shall therefore consider her view on the subject. en_NZ
dc.format pdf en_NZ
dc.language en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.subject English courts en_NZ
dc.subject Financial Services Act 1986 en_NZ
dc.title The English courts' view of financial derivatives en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit Victoria Law School en_NZ
vuwschema.contributor.unit Faculty of Law / Te Kauhanganui Tātai Ture en_NZ
vuwschema.subject.anzsrcfor 189999 Law and Legal Studies not elsewhere classified en_NZ
vuwschema.subject.anzsrcseo 970118 Expanding Knowledge in Law and Legal Studies en_NZ
vuwschema.subject.anzsrctoa 1 Pure Basic Research en_NZ
vuwschema.type.vuw Masters Research Paper or Project en_NZ
thesis.degree.discipline Law en_NZ
thesis.degree.name LL.M. en_NZ
vuwschema.subject.anzsrcforV2 489999 Other law and legal studies not elsewhere classified en_NZ
vuwschema.contributor.school School of Law en_NZ

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