The economic and financial crisis that began in 2007 demonstrated that improved transparency in the over-the counter (OTC) derivatives markets and tighter regulation of OTC derivatives and market participants was necessary.
One key pillar in the enhanced regulatory framework is the amended rules relating to the posting and holding of initial margin (IM). Initial margin is collateral posted to help reduce counterparty credit risk from uncleared OTC transactions.
The regulations imposing these requirements were split into a number of phases. Phase 5 for firms with a gross notional threshold over 50 billion (September 2020).
The final phase 6 for firms with gross notionals over 8 billion (September 2021), firms that do not meet these deadlines will no longer be able to trade with unpapered counterparties.
One of the key challenges faced by ‘in-scope’ firms is negotiating a new set of complex and unfamiliar documents.
…firms face a very resource-intensive process
How We Can Help
Condor is an alternative legal solutions (ALS) provider backed by quality assurance from Fieldfisher lawyers. Condor ALS services and products provide effective and cost efficient alternatives to previous law firm time based legal processes by utilising the right staffing combinations and innovative technologies to deliver and manage work.
Condor ALS combines the legal, regulatory and data management expertise of Fieldfisher lawyers with the negotiation, project management and technology capabilities of market-leading third service providers or our very own near shore teams to offer clients a comprehensive, quality-assured suite of solutions through a single contract.
- Expertise — Fieldfisher lawyers who are experts in the! sectors provide oversight and advisory on every Condor ALS engagement.
- Resources — Using our skilled teams of paralegals and legal execu,.6 s in Belfast, and project management expertise, we are able to resource your requirements in way that is both cost-effective and efficient.
- Technology — We implement our suite of cutting-edge technology tools which provide efficiency both on legal, matters and project management.
Our pool of legal experts
Data extraction and analytics
The Condor team extracts all relevant information from the client’s existing documentation and provides the client with an in-depth analysis
Playbook development
Condor works with its team of legal experts and you to define a clear and comprehensive playbook for executing and governing IM document repapering requirements
Drafting and negotiation
The Condor team drafts new proposed agreements and negotiates them with clients in accordance with the playbook. The service is project managed by Condor ALS with legal oversight by experienced Fieldfisher lawyers
The Value We Add
Condor’s scalable, flexible and cost-effective model enables us to deliver an efficient and cost effective outcome for our clients whenever they need it.
We can scale up to meet larger requests so a client can deal with potentially disruptive requests without having to constantly redirect already scarce internal legal resources.
We provide a customised service through the most relevant combination of resources to get the solution you need.
IBORs Discontinuance
The scale of the transition from LIBOR is vast…
Banks, financial institutions and their counterparties are facing pressure to phase out their exposure to LIBOR by 2021.
The issue has profound implications for all market participants as the masses of legacy agreements based on IBORs need to reflect the adoption of risk free rates (RFR) before the regulators no longer compel panel banks to submit LIBOR rates.
With the 2021 deadline fast approaching, the pace of activity across a multitude of working groups and regulators is increasing.
The scale of the transition from LIBOR is vast and depending on the organisation, may need widening beyond the core funding and treasury functions to include non- financial contracts, such as late payment clauses in commercial contracts, investment agreements and others.
Impacted product types include OTC derivative contracts, bonds, asset backed securities and loans, and given the prevalence of these products in today’s markets, this is no small task.
Tackling that task will require an array of different resources including project managers, experienced lawyers, paralegals, and technology tools.
Tackling that (IBORs) task will require an array of different resources….
How We Can Help
Condor is an alternative legal solutions (ALS) provider quality assured by Fieldfisher. Condor ALS provides cost efficient and fixed price alternatives to engagements that previously would have been charged on a time and materials basis, by utilising the right staffing combinations and innovative technologies to deliver and manage work.
Condor ALS combines the legal, regulatory and data management expertise of Fieldfisher lawyers with the negotiation, project management and technology capabilities of market-leading third service providers or our very own near shore teams to offer clients a comprehensive, quality-assured suite of solutions through a single contract.
- Condor provides a complete managed IBORs service that delivers a scalable, efficient and cost-effective solution for organisations.
- Combining its managed IBORs service with Fieldfisher’s market leading lawyers, Condor uses legal professionals based in its Belfast Service Hub and data management platforms such as Liberty.
- The advantage to organisations?
- Cost-effective and flexible legal solution.
- Your project is managed by a central team based in London.
- No headache of managing multiple providers.
Our Process
Template Design & Advisory
New deal template design
- Legal oversight from financial services lawyers
Review and Analysis
Existing document review
- Data extraction
- Data analysis
- Data categorisation
Remediation & Execution
Existing document remediation
- Full tracking and reporting
- Operational control
- Legal oversight
The Value We Add
Condor’s scalable, flexible and cost-effective model enables us to deliver an efficient and cost effective outcome for our clients whenever they need it. We can scale up to meet larger requests so a client can deal with potentially disruptive requests without having to constantly redirect already scarce internal legal resources.
If you would like to learn more about Condor ALS and how we can help you overcome your challenges please get in touch.
