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Credit Swap Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Credit Swap Agreement

"I need a Credit Swap Agreement under Hong Kong law for a major investment bank acting as protection seller, with physical settlement options and specific provisions for multiple reference entities in the technology sector."

Document background
The Credit Swap Agreement serves as a fundamental instrument in credit risk management within Hong Kong's financial markets. This document is utilized when parties seek to transfer credit risk exposure through a derivatives contract, typically employed by financial institutions, investment firms, and corporations managing their credit risk portfolios. The agreement comprehensively details the credit events that trigger payments, premium payment obligations, settlement mechanisms, and termination rights. Operating under Hong Kong law and regulatory framework, particularly the Securities and Futures Ordinance and OTC derivatives regime, the agreement incorporates necessary compliance elements while maintaining alignment with international market standards. The document is structured to accommodate various credit event scenarios, calculation methodologies, and settlement procedures, making it essential for sophisticated financial transactions in the Asian markets.
Suggested Sections

1. Parties: Identification of the contracting parties, including full legal names and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules

4. Credit Events: Specification of triggering events that activate the swap mechanism

5. Settlement Terms: Procedures and mechanisms for settlement following a credit event

6. Payment Obligations: Details of premium payments, payment dates, and calculation methods

7. Representations and Warranties: Standard and specific representations made by each party

8. Events of Default: Circumstances constituting default and consequential rights

9. Termination: Provisions for early termination and close-out procedures

10. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

11. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments

Optional Sections

1. Credit Support Arrangements: Required when parties agree to collateral or other credit support arrangements

2. Additional Termination Events: Used when parties agree to specific circumstances beyond standard events of default

3. Tax Provisions: Detailed tax clauses needed when cross-border elements exist

4. Multiple Reference Entities: Required when the swap covers multiple reference entities

5. Succession Events: Needed when dealing with potential changes in reference entities

6. Break Clauses: Optional provisions allowing periodic termination rights

7. Regulatory Compliance: Additional provisions required for regulated entities or specific regulatory regimes

Suggested Schedules

1. Schedule 1 - Transaction Terms: Specific economic terms of the credit swap including reference entity, obligations, and pricing

2. Schedule 2 - Calculation Methods: Detailed methodology for calculating payments and settlement amounts

3. Schedule 3 - Notice Details: Contact information and procedures for notices between parties

4. Schedule 4 - Credit Support Terms: Details of any collateral or credit support arrangements

5. Appendix A - Form of Confirmation: Template for transaction confirmations

6. Appendix B - Settlement Documentation: Forms and procedures for settlement following credit events

7. Appendix C - Eligible Obligations: List of obligations covered under the swap agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















































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Relevant Industries

Banking and Financial Services

Investment Management

Insurance

Asset Management

Corporate Finance

Capital Markets

Risk Management

Financial Technology

Investment Banking

Hedge Funds

Relevant Teams

Legal

Risk Management

Trading

Compliance

Operations

Treasury

Credit Analysis

Documentation

Finance

Regulatory Reporting

Portfolio Management

Structured Products

Middle Office

Relevant Roles

Chief Risk Officer

Head of Trading

Derivatives Trader

Legal Counsel

Compliance Officer

Credit Risk Manager

Portfolio Manager

Structured Products Specialist

Treasury Manager

Financial Controller

Documentation Specialist

Credit Analyst

Risk Analyst

Trading Operations Manager

Regulatory Reporting Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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