Derivatives Law and Practice

Subject LAWS70023 (2010)

Note: This is an archived Handbook entry from 2010.

Credit Points: 12.50
Level: 7 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2010:

March, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: The total class time is between 24 and 26 hours.
Total Time Commitment: Visit the Melbourne Law Masters website for more information about this subject.
Prerequisites: Visit the Melbourne Law Masters website for more information about this subject.
Corequisites: Visit the Melbourne Law Masters website for more information about this subject.
Recommended Background Knowledge: Visit the Melbourne Law Masters website for more information about this subject.
Non Allowed Subjects: Visit the Melbourne Law Masters website for more information about this subject.
Core Participation Requirements: Visit the Melbourne Law Masters website for more information about this subject.

Coordinator

Ms Janice Luck

Contact

For the most up-to-date information about this subject, contact the Melbourne Law Masters Office by email at law-masters@unimelb.edu.au or phone 8344 6190 or alternatively visit the subject website: www.masters.law.unimelb.edu.au
Subject Overview:

This subject considers the law and regulation of derivatives and derivatives markets. Principal topics will include:

  • Derivatives markets (exchange traded, over-the-counter, embedded) and derivatives products (plain vanilla products such as interest rate and currency swaps to credit and equity derivatives)
  • The role of derivatives, in particular credit derivatives, in the context of the credit crunch
  • Key principles of derivatives documentation and the collateralisation of derivatives
  • Regulation of derivatives and derivatives markets
  • Internal procedures controlling derivatives risks for financial institutions, trading practices
  • Derivatives and finance: Function of swaps in financial agreements, practical pitfalls in drafting, interplay with structured finance documentation
  • The risk of mis-selling derivative products, including an overview of relevant case law and events globally
  • Innovative derivatives and their use in the financial markets, including emissions trading and weather derivatives.
Objectives:

A student who has successfully completed this subject should:

  • Understand the commercial drivers and legal risks of derivatives
  • Be aware of the pitfalls in negotiating derivatives documentation
  • Understand derivatives regulation, both on a national and an international level
  • Understand basic, advanced and novel derivatives products
  • Be able to analyse the differences between the various derivatives markets
  • Understand the interrelationship of derivatives to structured finance

A key objective of this subject is to provide students with skills that can be applied in legal practice.

Assessment:

Class participation (10%)
9,000 word research paper (90%) (7 June) on a topic approved by the subject coordinator

Prescribed Texts: Visit the subject website for more information
Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills: Visit the Melbourne Law Masters website for more information about this subject.
Links to further information: http://www.masters.law.unimelb.edu.au/

Download PDF version.