Popular Press
Sovereign Immunity in Repo and Derivative Documentation: When to Worry - What to Do
Futures and Derivatives Law Report
(2021)
Abstract
Trading derivatives or repos with a party potentially entitled to sovereign immunity imposes a risk that the party will either be immune from lawsuit or immune from the enforcement of a judgment. As a matter of best practice, counterparties should perform due diligence to ensure that a party is not entitled to a defense of sovereign immunity and require a legal opinion to that effect from the party’s legal counsel. A counterparty should insist that the party represent in the ISDA or the GMRA that it is not entitled to any of the various sovereign immunities. It should then require the party to waive any sovereign immunity and agree that it will not raise the defense in court.
Keywords
- Sovereign Immunity,
- repos,
- isda master agreement,
- global master repurchase agreement,
- sovereign,
- sovereign wealth fund
Disciplines
- Law and
- Securities Law
Publication Date
April, 2021
Citation Information
Christian A. Johnson. "Sovereign Immunity in Repo and Derivative Documentation: When to Worry - What to Do" Futures and Derivatives Law Report Vol. 41 Iss. 4 (2021) Available at: http://works.bepress.com/christian_johnson/77/