Derivatives in Ireland

From the start of modern derivatives markets in the late 1980s, European cross-border derivatives contracts tended to be written in the English language and governed by English law. In most cases the parties also granted the English courts jurisdiction to hear any related contractual dispute. Accordingly, the English courts built up a body of relevant case law relating to the industry’s standard form documentation, which adds to a sense of legal certainty when parties select English law and the English courts. Prior to the Brexit vote, the choice of English law and the choice of English courts were non-negotiable provisions for most financial institutions negotiating derivatives contracts in an EU cross-border context.


However, Brexit disrupted that settled position. Can English law and the English courts remain the default selection? What if there was a convenient EU alternative offering efficient dispute resolution and enforcement mechanisms?

Why choose Irish Law and Irish lawyers for Funds

The advantages of Irish law and the Irish legal system are numerous and include the following:

  • Access to an experienced and efficient Commercial Court and Legal Services sector

 

  • Similar English speaking legal systems so minimal change to industry-standard contracts

 

  • Legal certainty maintained through ability to refer to English case law in Irish court proceedings

  • Robust and efficient dispute resolution and enforcement mechanisms protected by EU law, meaning recognition of choice of court agreements and recognition of Irish court judgments for local enforcement purposes throughout 27 EU jurisdictions

 

  • EU Regulatory Capital benefits for EU banks and investment firms using EU law

  • ISDA published Irish law versions of its standard contracts as part of its Brexit planning

  • ISDA commissions multi-jurisdictional Netting and Collateral legal opinions in respect of its Irish law documentation, offering regulatory capital and IFRS benefits

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