Consulting editor(s): Jonathan Denton, Regulatory consultant

Publication date: Dec 2010

Format: Hardback

Length: 280 pages

Price: £144.00

ISBN: 9781905783410

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Review for first edition: "The book was extremely well written, clear and concise. A beautiful selection of current topics with a good survey of articles."

- Dr Jean-Pierre Zigrand, The London School of Economics

Review for first edition: "It is up to date and the selection of contributors has provided us with an interesting contrast and coverage of a range of topics which have become of very great importance to financial and commercial market."

- Law and Financial Markets Review, Law and Financial Markets Review


The collapse of the financial markets in 2008 and the ensuing credit crunch were a wake up call to governments, regulators and financial market participants. In particular, attention has focused on the reasons for the failure of household financial institutions and the inevitable knock-on effect this has had not only between market participants, but also with end users of derivatives. Consequently, the ways that markets and institutions operate are coming under the microscope. No one wants a repeat of 2008 and so the need to understand the derivatives market is as great as ever. 

Featuring updated chapters, this second edition shows how derivatives are used in a variety of transactions, how the documentation works and why boards need to be aware of them.

With contributions from leading law firms including Sidley, Mayer Brown and Norton Rose, this accessible book takes a transactional approach and features coverage of new product innovations. These include equity and energy derivatives and the expansion of derivatives into new markets such as credit risk, weather risk and property. The book also features topical analysis on corporate governance and directors' duties; International Swaps and Derivatives Association documentation (including coverage of Global Market Repurchase Agreements, collateral; close-out netting and structured derivatives.

Market participants in derivatives now include financial institutions, corporations, pension funds and hedge funds, supranational entities and governments and their legal advisers. Whether you are from a bank or financial institution or from a company or organisation looking to invest or manage your risk, this title will provide you with practical tools for using derivatives in your business.