½Û×ÓÊÓƵ

View the related practice notes about Back to back transaction

Exchange traded derivatives

Exchange traded derivatives This Practice Note examines the basic concepts and issues relating to ETDs including: • what ETDs are and how they work • how ETDs manage counterparty risk by clearing and collateralising trades • how ETDs are traded and matched on a regulated exchange • how ETDs are given-up for clearing, and • how collateral is managed For more information on the differences between OTC derivatives and ETDs, see Practice Notes: OTC and exchange traded derivatives—key features and concepts and OTC and exchange traded derivatives—documentation. What are exchange traded derivatives? ETDs are derivative contracts which have been entered into through a regulated exchange (the Exchange). The Exchange is a market mechanism which enables the exchange of offsetting derivative contracts. It provides a forum where a relatively limited range of futures and options can be traded on standard terms. Trading derivative contracts on the Exchange requires those contracts to have highly standardised terms and conditions to ensure that they can be matched on the Exchange. Unlike...

Sub-sales and assignments

Sub-sales and assignments What is the difference between a sub-sale and an assignment? Sub-sale A sub-sale arises where A contracts to sell a property to B but, before completing the purchase from A, B then enters into a separate contract with C to sell the property to C. There are, therefore, two sale contracts in relation to the one property (A-B and B-C). Completion can be effected either by: • a single transfer (A to C, at B’s direction), or • two transfers (A to B and then B to C) Assignment An assignment arises where A contracts to sell a property to B and B then assigns the benefit (but not the burden) of that contract to C. Completion is then effected by a single transfer from A to C. Assignment must be distinguished from a novation. Novation arises where A contracts with B who then ‘transfers’ (or novates) its rights and obligations under the contract to C. The novation requires A’s consent. The result of the novation...

View the related q&as about Back to back transaction

It is becoming more common that conveyancers are asking for confirmation that the seller's solicitors have carried out ID checks and are satisfied that the seller is the registered proprietor. I am concerned about the transfer of AML and fraud risk particularly where the buyer's solicitors state they will be placing reliance upon the representations made by the seller's solicitors. Should my response be that the buyer should make/rely on their own checks?

It is becoming more common that conveyancers are asking for confirmation that the seller's solicitors have carried out ID checks and are satisfied that the seller is the registered proprietor. I am concerned about the transfer of AML and fraud risk particularly where the buyer's solicitors state they will be placing reliance upon the representations made by the seller's solicitors. Should my response be that the buyer should make/rely on their own checks? In respect of relations between agents and third parties generally, in the absence of other indications, when an agent makes a contract, purporting to act solely on behalf of a disclosed principal, whether identified or unidentified, he is not liable to the third party on it. Nor can he sue the third party on it. See Practice Note: Agent and third party relationships. However, at common law, where a person purports to contract on behalf of a principal, and the principal is a fictitious or non-existent person or entity, the person so purporting...