FMLT Training
FMLT trains lawyers to understand, and to speak, the language of the markets – so that they can grasp what clients need to tell them.
Attendees will get to grips with:
- how and why trades are carried out,
- the cash flows,
- the legal basis for the transactions and the underlying collateral, and
- the key terms in the agreements.
These issues are rarely covered at law school, but lawyers must follow what is going on, and understand the risks involved, in order to give full value to the client when advising on transactions.
Understanding Markets – For Lawyers
The course explores the nature of the instruments themselves, how trades are dealt and the workings of the markets, ensuring that attendees can ask the right questions of their clients when working on the terms of transactions.
Given from a lawyer’s perspective, it covers:
- the uses of transactions,
- the institutions and other participants in the markets, and
- the jargon used in the markets,
as well as examining the legal concepts which apply through the trade workflow.
Worked examples are provided for futures, repo and swap transactions, and the key terms in the related agreements are illustrated.
One of the main aims throughout the day is to instil familiarity with basic concepts: longs/shorts, bid/offer, compounding and discounting etc.. Fluency with the issues ensures that attendees will ask the right questions when documenting a trade or the relationship.
Course Agenda
| Session | Topics covered include |
|---|---|
| Markets | Exchanges, OTC, uses of markets, users of markets |
| Legal Issues | Non-performance, insolvency, netting, collateral, EMIR, Brexit |
| Bonds and rates | Bonds, coupons, valuation, LIBOR, government bonds, eurobonds |
| SFTs | Repo, GMRA, Stock loan, GMSLA |
| Futures | Forwards, Long/short, futures, hedging, interest rate futures, bond futures |
| Swaps | IRS, cross-currency, ISDA, CSA, VM & IM CSAs |
| Clearing | CCPs, CCP’s requirements, CM/CCP relationship, Client/CM relationship, cleared swaps |
Perceptual Learning Module
The presentations are supplemented by a series of electronic flashcard tests, given before, during and after the day (one week later, a month later and three months later). This Spaced Learning technique has been proven to endure the long-term retention of information, and will ensure that the concepts are always at hand.
Paul Watkins
Paul Watkins, FMLT’s Principal, also acts as a clearing specialist working with investment banks. Previously Paul spent his career working with exchanges and clearing houses in a variety of in-house legal roles:
- Post-trade at London Stock Exchange
- Head of Membership and Legal at the International Petroleum Exchange (before it became part of ICE)
- Legal Counsel at European Repo Exchange
- Lawyer at Bourse de Paris/MATIF, Clearnet and Euronext
- Director: Legal at LCH
Career highlights include
- The transition of settlement away from LSE to Crest
- Transition from floor trading to electronic trading at IPE, with the introduction of Natural Gas futures
- Merger of the Dutch, Belgian and French CCPs at Clearnet
- Managing the legal aspects of the defaults of Lehmans and MF Global
- Drafting the rulebook for derivatives for LCH’s EMIR authorisation application
What people say
“A very comprehensive course, which was enjoyable and interesting. Just the right level of detail foran introductory course for the team.”
Claire Thurston – Head of Legal (Investments): USS Ltd
“Understanding Markets – For Lawyers is a brilliantly-presented and erudite programme which Paul delivers with the benefit of his unrivalled experience in both the legal and operational processes of financial markets transactions. He takes complex financial jargon and presents it in the lawyer’s vernacular, in a manner that is both well thought-through and entertaining. As a unique and inspired feature, the programme is supported by an online test of participants’ understanding of the financial markets, which is reinforced by regular repetition both during, and at regular intervals after, delivery of the course presentations.”
Jonathan Gilmour – Head of Derivatives & Structured Products: Travers Smith
“Paul’s training course “Understanding Markets – For Lawyers” provides a comprehensive overview of both the legal and commercial concepts which every capital markets lawyer needs to be familiar with. His programme is thought through and thorough and he supports the overall learning outcome by online testing before, during and after the course. The results showed that he has made a difference.”
Sebastian Reger – Partner: Travers Smith