Global menu

Our global pages

Close

Black Swan Event Alert

  • Hong Kong
  • Banking and finance

23-01-2015

Last week, the Swiss National Bank (SNB) removed the €1.20/CHF peg. This took the FX markets by complete surprise, and caused a dramatic spike in the value of the Swiss Franc.

The full scale of that fallout remains to be seen. Cafsualties include a major hedge fund which reportedly suffered nearly US$1 billion in FX losses. Such heavy losses would almost certainly be linked to derivatives exposures.

Directors of insolvent companies will have obligations to creditors. Creditors may have concerns about exposure and solvency of their trading partners. Handling derivatives contracts can be daunting, and the repercussions are enormous if you get it wrong.

As our valued client, we would like to provide you with a concise 10-step practical guide to "Closing Out ISDA contracts". To view the guide, please click here. Please note that this guide is for information purposes only, and legal advice should be sought for specific situations.

Eversheds Sutherland are recognised as a leading insolvency practice in Hong Kong, with particular expertise in closing out derivative contracts, complex securitisation structures, or other complex financial products. If you have any questions, please contact Kingsley Ong, from our Hong Kong office or Damian Mueller from our Swiss office.

Kingsley Ong, Partner

< Go back

Print Friendly and PDF

© Eversheds Sutherland 2021. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.