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Derivatives and Trading

We represent hedge funds, corporate treasuries, financial institutions, managed account platforms, asset managers and high-net-worth individuals in structuring, negotiating and executing complex and bespoke derivative instruments.

We advise on a wide range of products including swaps, options, forwards and repos, covering interest rate, fixed income, currency, commodity, equity, credit, basket and index underliers.  The team routinely advises on matters such as:

  • prime brokerage and issues around rehypothecation and segregation;
  • custody and collateral;
  • securities lending and margin financing matters;
  • repos;
  • structured products;
  • exchange traded derivatives;
  • central clearing including OTC clearing under Dodd-Frank and EMIR;
  • cash equities and cash bond trading under broker terms of business; and
  • electronic trading arrangements.

Our team works alongside our specialist lawyers in financial services, regulatory, capital markets, tax and dispute resolution and is able to advise on both the day-to-day trading requirements of our clients, and the most complex derivative and structured product transactions in both transactional and contentious roles.

We have a global client base; we act for managers in London, New York and Hong Kong and have daily experience negotiating for these clients with the London and New York offices of the leading US and European banks and broker dealers.



Recent work

ADR Financing

Advising a multinational commodities trading firm in relation to financing the acquisition of ADRs representing a significant stake in a Russian company, structured through equity derivatives.

Deal-contingent forward

Advising a private equity fund in relation to a deal-contingent forward in respect of completion payment obligations in Polish Zloty under a Polish buy-out.

Managed accounts

Advising five managed account platforms, including two of the largest, on their trading documentation.

Multi-billion euro equity swap

Advising a continental bidder in relation to a multi-billion euro equity total return swap in respect of a proposed takeover target, as part of a €40bn takeover offer.

Securities lending and custody arrangements

Advising funds in relation to their securities lending and custody arrangements.

Trading arrangements

Advising over 40 leading hedge funds in all the major jurisdictions in relation to their derivative trading arrangements under ISDA, GMRA, prime broker agreements and many others.

Transfer of energy trading contracts

Advising a leading European utilities company in relation to the transfer of its energy trading contracts to another jurisdiction.

UK equity swap

Advising the investment vehicle of a high-net-worth individual in relation to a £100m UK equity swap.

See all
See all contacts

Will Sykes

 Partner
+44 (0)20 7849 2294 Email Will

Christopher Acton

 Partner
+44 (0)20 7849 2543 Email Christopher

Quick reads

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In depth

LME’s cancellation of nickel trades was not unlawful

Christopher Charlton , Madeleine Brown, Robert Daniell, Edward Karsten 11 Jan 2024
The High Court has dismissed claims brought by Elliott and Jane Street arising out of the London Metal Exchange’s decision to retrospectively cancel nickel trades made in the run...
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Pension scheme clearing exemption – latest updates

Edward Karsten, Will Sykes 09 May 2023
The UK and the EU are diverging in their approaches to the pension scheme arrangement clearing exemption. We set out the latest updates below and the impacts these may have on...
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Could US sanctions impede credit derivative auctions on Russian debt?

Will Sykes, Robert Daniell, Christine Long 10 Jun 2022
At the beginning of February, we wrote of the concern that financial sanctions risk causing material harm not only to the target of the sanctions but also to their western counterparties.
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What people are saying

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"The derivatives practice at Macfarlanes provides an efficient, strong and supportive partnership for our many funds, it really understands our organisation’s nuances, risk strategies and priorities."

The Legal 500 2023

"Their project management capabilities are exceptional. They are extremely collaborative and a pleasure to work with and thrive on supporting an innovative project."

The UK Legal 500 2023

"In this area Macfarlanes have unique insights into what buy-side clients should really care about. They have deep knowledge of derivative contracts and prime brokerage arrangements. There are very few areas in this space that do not have extensive experience."

The UK Legal 500 2023

"I have worked with Macfarlanes for over 10 years. They are my first choice of derivatives and repurchase transactions counsel. Their turnaround times are exceptional, they are approachable and engaging. They are very competent of the legal and regulatory regime in an ever-changing regulatory or political canvas. They are very much attuned to the latest industry practices and commercial in their advice which is really helpful for an in-house counsel."

The UK Legal 500 2022

"This team has superior practical experience of derivative transactions. Some of the team have worked in industry previously and therefore know exactly what firms are looking for in terms of deliverables."

The UK Legal 500 2022

"We have used the Macfarlanes team for some years now and they continue to impress. Whether small tasks or large projects, the service you get is quick, smart, sensible and good value. For bespoke and nuanced arrangements and advice, they are sharp and clear-thinking. We are always confident that they fully understand the commercial complexities as well as the legal analysis."

The UK Legal 500 2022