Our derivatives team delivers sophisticated legal counsel across the full spectrum of derivative transactions, leveraging extensive experience across multiple asset classes. While our capabilities span fixed income, foreign exchange, and credit derivatives, we bring a particular depth to as energy and commodities (both metals and soft commodities), reflecting our strong presence in these dynamic markets. We also have significant experience representing corporate clients in their corporate finance related derivatives, including accelerated stock buybacks, call spreads and convertibles and issuer forwards on common stock. Our practice also extends across emerging markets, with a notable focus on providing innovative solutions to clients operating in Latin America.

We are well-versed in negotiating and drafting ISDA Master Agreements and associated documentation, combining technical precision with informed, pragmatic advice tailored to client needs. Our team is well-versed in market-standard template documentation and has demonstrated the ability to efficiently manage large-scale documentation initiatives, including redocumentation projects addressing regulatory reforms such as the LIBOR transition. Clients rely on our insights to navigate the legal, regulatory, and tax complexities of derivatives and structured products, with understanding in cross-border considerations, commercial end-user matters, and issues involving commodity pools.

Our regulatory capabilities are equally robust, encompassing the full spectrum of derivatives compliance challenges worldwide.  From end-user and swap dealer regulations issues, to energy exemptions from swap regulations (physical forward and trade options) and commodity pool operator issues, we can tailor a compliance program for a trading desk or a hedging policy for a corporate treasury division.  We provide our clients with clear, actionable advice to help them meet their global compliance obligations while supporting their strategic objectives.

We represent a diverse client base that includes both sell-side banks and financial institutions and buy-side, such as corporates, funds, and sovereign entities (including state owned companies), ensuring tailored support for a range of unique business requirements and goals.

Additionally, our team possesses significant experience advising on structured products, including the development of index-linked structured notes, repackaging programs, and structured repos. With our discernment of securities law, both domestic and cross-border, we guide clients in structuring and executing complex transactions, from implementing MTN programs to managing takedown offerings.

At Baker Botts, we pair our technical competence with an unwavering commitment to the priorities of our clients, offering strategic counsel designed to anticipate risk, drive efficiency, and maximize opportunity in a constantly evolving global marketplace.

What We Do:

Derivatives & Commodities Transactional

• Energy companies in hedging and project finance transactions, including heat rate call options and synthetic PPAs in renewable projects
• Dealer banks in negotiation of ISDA Agreements and pari passu review of Credit Documents and Security Documents, with respect to foreign exchange, fixed income and energy transactions
• Corporate issuers in equity forwards, accelerated stock buybacks and call spreads related to convertible offerings
• Dealer banks in structured total return swap transactions with loan underliers
• Corporate and energy clients with respect to establishing carbon credit trading programs both in the voluntary and mandatory markets
• Dealer banks, corporate treasury affiliates and funds in repo programs
• Corporate end-users in establishing hedging programs and ISDA and derivatives documentation templates
• Dealer banks in structured note programs related to equities and commodities
• Commodities trading companies and energy companies in forward and repo transactions in the energy and metals industries

Derivatives & Commodities Regulatory

• Total return swaps platform in their application and registration with the SEC
• Dealers, technology providers and starts up with fintech regulatory counseling, including in the crypto space
• Corporate end users with respect to their Dodd-Frank compliance
• Trading units of corporate entities with respect to exchange obligations and investigations
• Energy companies and trading companies with respect to swap dealer requirements and exemptions, including the physical forward exemption and de minimus exemption
• Funds and private equity with respect to commodity pool operator compliance and exemptions