The Legal department of a major European investment bank.
Issues that we helped identify
The client required assistance in relation to the integration of a substantial commodities derivatives business that it had purchased from another institution.
We were engaged by the client to assist in the management of securing novation agreements with in-scope counterparties to provide the legal mechanism to transfer the relevant trades to the client.
How did we help our client?
- Due diligence: Analysis of documentation and data relating to (a) the client’s existing portfolio of counterparties/positions and (b) the portfolio of counterparties/positions to be purchased, to identify for each in-scope counterparty the most appropriate strategy, namely:
- migrate trades only,
- migrate both trades and master agreement, or
- migrate trades and amend existing master agreement
- Template development: assistance in the drafting of novation agreement templates to cater for the migration of different agreement and product types
- Drafting and despatch: drafting novation documentation and despatching to in-scope counterparties
- Reconciliation of trade lists: liaising with counterparty Operations teams to agree the details of in-scope trades
- Chasing, negotiation and execution: managing the end-to-end document negotiation and management process, including escalating issues for sign-off by client stakeholders in accordance with a pre-agreed playbook
- Tracking & MI: detailed recording of progress was maintained to provide granular MI to assist in monitoring progress against project milestones
How did the project benefit our client?
The client was able to achieve the successful migration and integration of the target business.
In addition, via the extensive due diligence undertaken during the first phase of the project, the client was left with a detailed understanding of the content and quality of the legal documentation supporting trades with the relevant counterparties.
Project time and resource
We were engaged on the project for eight months.
Over the course of the project, six of our consultants (with overall oversight supplied by one of our SME’s) were deployed.