22 September 2016

KWM cross-border team advises ISDA on its first China Collateral Memorandum

King & Wood Mallesons (KWM) has advised the International Swaps and Derivatives Association (ISDA) on the recent publication of the ISDA 2016 China Collateral Memorandum to assist market participants in navigating the legal issues involved in exchanging collateral with a counterparty in China. The ISDA 2016 China Collateral Memorandum analyses the enforceability of collateral rights contained in ISDA credit support documentation under Chinese law.

The cross-border KWM team comprises our derivatives, finance and bankruptcy teams across the network from China, Hong Kong and Australia. The key partners involved in this project include Minny Siu and Richard Mazzochi of our Hong Kong team, and China partners Robert Chen, Stanley Zhou, James Guan and Daryl Hao. In Australia, derivatives specialist Scott Farrell also assisted in the development of the memorandum.

Commenting on the development, Hong Kong partner Minny Siu said, “We are delighted to have been able to assist ISDA in facilitating market participants’ understanding of the Chinese legal issues in analyzing collateral arrangements under the ISDA credit support documentation. We have worked closely with ISDA and its members, drawing on expertise across the KWM network over a number of months to complete this important project.”

China partner Stanley Zhou said, “We feel honoured to support ISDA as Chinese lawyer team on the China Collateral Memorandum development, providing guidance to the participants in China for their engagement in the market. The project not only proves our in-depth understanding to the China finance market and wide experience, but also reflects the client’s recognition to our strong international platform and first-class service.”

The publication of the China Collateral Memorandum follows the rollout of new margin requirements for non-cleared derivatives in some jurisdictions on September 1. Developed by the Basel Committee on Banking Supervision and International Organisation of Securities Commissions, the margin framework is expected to be implemented in other jurisdictions over time.

Media Contact

Share on LinkedIn Share on Facebook Share on Twitter Share on Google+
    You might also be interested in

    The project is the first Tesla factory outside the US, and also thus far the largest foreign-invested manufacturing project in Shanghai.

    16 July 2018

    The successful completion of this high-profile transaction marks one of the most significant financings in China’s entertainment industry in the first half of 2018.

    13 July 2018

    KWM team is led by partners Xiao Jin, Xue Han, and Liu Cheng.

    10 July 2018

    King & Wood Mallesons’ cross-border team, advised Luye Pharma Hong Kong Limited (“Luye Pharma”) on its transaction signed with AstraZeneca relating to the sale and licence of the rights to Seroquel...

    09 May 2018

    You may also be interested in...

    This publication has been downloaded from the King & Wood Mallesons website. It is provided only for your information and does not constitute legal or other advice on any specific matter. If you require or seek legal advice you should obtain such advice from your own lawyer, and should do so before taking, or refraining from taking, any action in reliance on this publication. If you have any questions, please contact King & Wood Mallesons. See www.kwm.com for more information.