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Ireland could attract trillions in financial contracts post-Brexit
Ireland may become a jurisdiction for trillions of euro of financial contracts, covering everything from currency to fuel and interest-rate hedging agreements post-Brexit, under a plan being considered by a global body overseeing this market, The Irish Times has learned.

This would deliver a boon for corporate law firms in Dublin and potentially add to the International Financial Services Centre's (IFSC) attraction as a base for global financial activities.

Most international financial derivatives contracts - crucial to the functioning of the modern economy as they allow businesses manage various risks and costs - use standardised documentation from the International Swaps and Derivatives Association (ISDA), drawn up under either English or New York law.

However, an association communication to members in recent weeks, seen by this newspaper, says that it is looking at Irish and French law as alternatives to English law for European derivatives contracts.

I suspect that a decision to use Irish or French law for financial contracts post Brexit - instead of UK or New York law - could be the single most important influence on where most of the financial services departing London will end up.

I suspect the Irish judiciary may not have a huge amount of expertise/experience in deciphering the code around complex financial instruments, but the fact that the contracts would still be in English would be a considerable advantage.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Oct 20th, 2017 at 06:14:48 PM EST
[ Parent ]
And of course the Irish common law system is very similar to the UK one.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Oct 20th, 2017 at 06:16:18 PM EST
[ Parent ]
Careful what you wish for. If Ireland absorbed the City, the next crisis would devastate the country.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Cyrille (cyrillev domain yahoo.fr) on Sat Oct 21st, 2017 at 07:09:04 AM EST
[ Parent ]
Irish law being similar to English law is a big plus for using it for financial contracts. Other than that, Luxembourg law seems the natural choice to me because Luxembourg is already a microstate focused on finance and law. But French law? No.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Nov 8th, 2017 at 12:04:51 PM EST
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