Table of Contents

Preface 5
Edmund Parker

Part I: Introduction to commodity derivative products
Overview and introduction to commodity derivatives 7
Edmund Parker
Reasons for entering into commodity derivative transactions 37
Sabine Bertin
Aaron McGarry

Part II: Commodity derivative instruments
Over-the-counter (OTC) commodity derivatives 63
Marcin Perzanowski
Structured commodity derivatives 83
Sabine Bertin
Dharini Collins
Exchange-traded commodity derivatives 121
Dharini Collins
Nanak Keswani

Part III: ISDA commodity derivative documentation
ISDA suite of commodity derivative documentation 149
Edmund Parker
Marcin Perzanowski
Introduction to the 2005 ISDA Commodity Definitions 175
Edmund Parker
Marcin Perzanowski
Standard commodity derivative confirmations 223
Marcin Perzanowski
Bullion transactions 239
Marcin Perzanowski
Weather index derivative transactions 263
Erica Johansson
David Johnson
Gas derivative transactions 283
Edmund Parker
Power derivative transactions 317
Edmund Parker
Emissions trading 335
Avanthi Gunatilake
Edmund Parker
Freight derivative transactions 367
Avanthi Gunatilake
Edmund Parker

Part IV: Other documentation platforms for commodity derivatives
Overview of documentation produced by the Futures and Options Association 391
Danuta Rychlicka
The European Federation of Energy Traders 433
Ellen Doubtfire
Aimee Lewis
Overview of other documentation platforms for OTC commodity derivatives 459
Amandeep Kharaud

Part V: Tax and regulatory aspects of commodity derivative transactions
Tax aspects of commodity derivative transactions 485
Sandy Bhogal
Catriona Nicol
UK and EU regulatory aspects of commodity derivatives 501
Miles Bake
US regulation of commodity derivatives 529
Jeremiah Wagner

About the authors 581

All authors are (or recently have been)
lawyers working at Mayer Brown

About the Author

Edmund Parker is a partner at Mayer, Brown, specialising in derivatives and structured finance in the firm's London office finance department. He is one of the world's leading credit derivatives experts and advises many of the most active investment banking institutions and other market participants on diverse funded and unfunded credit derivatives matters. He has been instructed on many of the 'new generation' credit derivatives products, such as constant proportion portfolio insurance, constant proportion debt obligations and credit derivative product companies. He has also advised leading financial institutions on managing all of the largest credit events to hit the market in recent years, as well as on the full range of ISDA template documentation and more traditional synthetic collateralised debt obligation and credit linked note structures. He previously practised at Clifford Chance, Sidley Austin, and Gide Loyrette Nouel.

Reviews

Move over The Wealth of Nations, Das Kapital and Capitalism and Freedom over on your bookshelf; Commodity Derivatives is a worthy addition to these economic treatises. Michael Sackheim Futures & Derivatives Law Report Review for Credit Derivatives, by Edmund Parker: "This book is first and foremost an essential resource for legal practitioners involved in advising on or structuring credit derivative products." Paul U Ali Associate Professor, University of Melbourne Review for Credit Derivatives, by Edmund Parker: "The volume that he has given us is, without doubt, the single best publication on credit derivatives for the practising lawyer that is available." Michael Sackheim Futures & Derivatives Law Report