Modern Financial Products (J. Dalhu*sen)

This course deals with a number of modern financial products operating in the international financial markets and with the essences of risk management in terms of modern hedging instruments (futures, options and swaps), securitisations and credit derivatives, and with the objectives and impact of banking regulation focusing also on the new international standards for capital adequacy (Basel II).

As far as the modern financial products are concerned, main problems arise with assets backed funding (like in floating charges, financial leasing, repos, and receivable financing), the characterisation of the relevant modern financial products in the applicable legal systems, and their bankruptcy resistency in a bankruptcy of parties requiring funding. Others concern the operation of the payment and securities transfer systems, the finality of these transfers, the role of clearing and settlement and the operation of central counterparties in this connection.

This is a three credit course which will be given till March 8. Exams will be after the end of this course in March. The main text that will be studied is Dalhuisen on International Commercial, Financial and Trade Law, 3d edition, Chapter 5 (2007).

Exam Notes: F