International Financial law master’s distinction exam model answer is required for the following question, between 1000 words, Law exam referencing:
Note: I need the work by 11am tomorrow morning please, I can’t get an extension, thank you.
Banco Pesto et Tortellini (BPT), an Italian Bank, is intending to enter into an ISDA Master under English law with Satay & Rengdang (SR), a corporate entity set up in the SE Asian state of Taipanbodia and requires your advice on the following matters:
1.a) the ISDA legal opinion on Taipanbodia is unclear as to the enforceability of close out netting in respect of Taipanbodian corporations but SR has offered to enter into a full transfer of title CSA under English law to mitigate the risk that netting might not be enforceable;
2.b) Taipanbodia is regularly struck by earthquakes and electronic communications breakdown frequently in consequence preventing electronic funds transmission by banks and corporates in Taipanbodia; SR will be required to make cash payments from there to BPT’s offices in Frankfurt under the terms of derivatives transactions to which the ISDA Master applies; most of the transaction are FX transactions and currency options;
3.c) SR may be subject to sanctions by its government making it illegal to make any payments to foreign banks and corporates while the sanctions last and payments might need to be paid to BPT by SR during the period of the sanctions under derivatives transactions to which the ISDA applies;
4.d) If netting is made enforceable by governmental decree in the very near future in Taipanbodia due to market pressure, and SR goes into default how would BPT calculate close out amounts particularly if market maker quotes are not available in respect of FX and currency transactions where one side of a trade consists of Taipan Dongs, the currency of Taipanbodia.
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