Book Practical Derivatives

• the rise of derivatives referencing cryptocurrencies and other digital assets, and the emerging regulatory framework on both sides of the Atlantic;
• the slow but steady move to assets meeting the Environmental, Social and Governance (ESG) criteria in the area of derivatives and structured products;
• the completion of the regulatory framework for cleared and OTC derivatives;
• the development of non-English/New York law derivatives documentation; and
• the emergence of new structures in the securities finance world.

It also includes updated chapters explaining how derivatives are used in the practical context, how the documentation works and any pitfalls for the unwary. It provides real-life tips for the application and negotiation of transactions referencing:

• 2021 ISDA Interest Rate Derivatives Definitions;
• 2014 ISDA Credit Derivatives Definitions;
• 2002 ISDA Equity Derivatives Definitions;
• 2005 ISDA Commodity Definitions;
• Regulatory IM and VM documentation; and
• The principal repo and stock lending forms of agreement.

With contributions from leading law firms, investment firms and academics, this accessible book takes a transactional approach and features coverage of product innovations. Whether you are at a bank, asset manager, pension fund, insurance company or other financial institution; from a company or organization looking to invest or manage your risk; or involved in providing advisory services to these entities, this title will provide you with practical tools for using derivatives in your business.

Chapter on Energy derivatives

Cyriel de Jong wrote a chapter on ‘Energy derivatives and hedging strategies’. He updated his chapter and added a completely new case-study compared to the previous edition. The new version includes a case-study on renewable power derivatives, instead of weather derivatives. Cyriel de Jong: “the electricity sector sees a wave of new investments in renewable energy assets, such as solar and wind, which creates a number of financial challenges for all parties involved. I have therefore added a case-study of a solar park in Spain, providing some useful insights on common hedging strategies to mitigate market price risks.”