Derivatives & Structured Products

Shearman & Sterling’s Derivatives & Structured Products Group is widely recognized for its sophistication, experience and depth in legal matters involving highly structured derivatives transactions. We represent financial institutions, issuers, asset managers, hedge funds, investors and other end-users in developing, structuring and executing derivatives and structured products, both as standalone transactions and as an integral component of capital markets transactions, mergers & acquisitions, project and leveraged finance, asset repackaging, monetization and securitization transactions. Shearman & Sterling also represents leading clearing organizations and infrastructure providers for the derivatives industry.

Our Derivatives & Structured Products Group advises clients in the full range of structural, legal and documentation considerations that arise in derivatives and structured product transactions across all major asset classes, including credit, equity, fixed income, currency and commodity-linked instruments. Together with our Capital Markets and Financial Institution Advisory & Financial Regulatory practices, we regularly counsel clients on regulatory and legal issues arising under the US securities laws, US Commodity Exchange Act, insolvency laws and banking laws in connection with derivatives and structured products. We also advise clients with respect to structuring collective investment vehicles such as hedge funds and commodity pools that access the securities and derivatives markets.

Matters Shearman & Sterling’s Derivatives & Structured Products Group regularly advises on include:

• Trading Documentation – We represent numerous hedge funds and other market participants in connection with their trading documentation, including ISDA, repo and securities lending agreements.
• Bespoke Derivatives Transactions – We advise financial institution and other clients in a wide range of negotiated and highly structured derivatives transactions.
• Counterparty Credit Risk and Insolvency Issues – We assist market participants in managing their exposure to troubled institutions, including analysis of derivatives and other exposures and advice regarding termination, liquidation, netting and setoff rights with respect to positions and collateral.
• Derivatives Clearing and Infrastructure – We have assisted in the establishment of clearing organizations and other infrastructure providers for derivatives.