Welcome back to the Fides Weekly Update. Here we provide you with the main trends, moves and developments in legal and compliance. Scroll down to check out the Movers & Shakers of the Week.
Tweet us at @Fides_Search – we would love to hear from you!
New tech on the market for OTC derivatives regulation
This week we saw an alliance formed between a magic circle firm and one of the Big Four that could signal a significant shift in the legal market.
Allen & Overy has partnered with Deloitte in developing a tech system that helps banks handle new regulatory requirements in the over-the-counter (OTC) derivatives market.
MarginMatrix is their newly launched digital derivatives compliance system, which codifies the laws in various jurisdictions and automates the drafting of tailored documents for OTC derivatives products, subject to rules under the European Market Infrastructure Regulation (EMIR).
The product also accommodates for the new margin requirements within EMIR coming into force this September. The new rules demand that all counterparties to derivatives contracts, which are not cleared through an authorised clearing system, must provide additional margin for their net exposures. Studies have estimated that banks will need to reserve approximately $10 billion to cover these initial margins. A&O claims that their new system will lead to significant cost-savings for their clients through the auto-drafting of complex documentation as well as minimise the risk of a non-compliant outcome.
The launch of this product was a ground-breaking move in the legal market, as it saw A&O and Deloitte join forces, combining A&O’s well-established derivatives practice with Deloitte’s impressive technical expertise and managed services. It highlights the impact alternative business structures are having on the legal market as they not only inject a new wave of competition in the sector, but also make strategic alliances to further solidify their stance in the sector.
MarginMatrix is just the latest in a string of new technology solutions tools available to law firm clients. Pinsent Masons’ Cerico, Simmons & Simmons’ navigator and A&O’s Rulefinder are some of the other tools banks can use to assist in maintaining regulatory compliance.
The Deloitte A&O tie-up is a further development that points towards the determination of professional services firms in becoming recognised legal services providers. It also adds to the raft of legal tech entering the UK legal market. With the increasing focus on effective client solutions, technology and innovation has become more fundamental in shaping law firms strategies, and we expect to see further developments both through increased outputs from law firm innovation labs and market collaboration.
Movers & Shakers of the week
Sullivan & Cromwell elects new London managing partner
Corporate partner Richard Pollack has been named managing partner for the London office of Sullivan & Cromwell, taking over from Richard Morrissey in July
Simmons boost internal capital markets offering
Simmons & Simmons have appointed former Allen & Overy counsel Jeroen Bos to their international capital markets practice in Amsterdam as a partner
Jupiter Asset Management gains new GC
Former Man Group general counsel Jasveer Singh takes on new position as GC for Jupiter Asset Management
W&C appoint Asia corporate head
Linklaters former Asia head of private equity Chris Kelly has joined White & Case, where he will sit in their global M&A practice and lead their corporate practice in Asia
Debevoise associate becomes legal chief at investment manager
Chris Wright has left Debevoise & Plimpton to join Leadenhall Capital Partners as their head of legal
Skadden adds to white collar crime team in London
Partner Elizabeth Robertson leaves K&L Gates to join Skadden, Arps, Slate, Meagher & Flom in their European Government Enforcement and White Collar Crime practice
Quinn Emanuel hires HSF partner to launch UK construction disputes offering
Partner James Bremen leaves Herbert Smith Freehills to set up Quinn Emanuel Urquhart & Sullivan’s UK construction disputes practice
Paul Hastings hires A&O finance counsel
James Taylor has joined Paul Hastings as a partner in their City finance practice, moving from Allen & Overy where he was counsel in London and Frankfurt
Mayer Brown further expand private equity offering in London
James West departs Reed Smith to become a partner in Mayer Brown’s corporate & securities practice in London
Mergers & Alliances
Bond Dickinson makes transatlantic alliance
Bond Dickinson has carried out an exclusive strategic alliance with US firm Womble Carlyle Sandridge & Rice