Derivative Financial Instruments in International Commercial Turnover

The master dissertation is devoted to the legal aspects of trading derivative financial instruments in the international turnover with particular focus on universal problems and rules of private international law. The author, firstly, assesses various approaches to defining financial derivatives and classification thereof, identifies different functions financial derivatives serve, as well as emphasizes the role of standard trading documentation and trading rules in the commercial turnover. Secondly, the author analyses legal developments of the European and Russian conflict of laws rules on the over-the-counter and exchange-traded derivative contracts. Thirdly, the author covers conceptual differences between various types of derivative financial instruments, including options, forwards (futures) and swaps. At the same time, one of the features of this work is analysis of rules on the conclusion, performance and termination of over-the-counter derivative contracts subject to ISDA standard documentation, as well as exchange-traded derivatives subject to trading rules of the Moscow Exchange and clearing rules of the National Clearing Centre. Finally yet importantly, the author provides for comparative analysis of conflict of laws rules on close-out netting and regulation of its enforcement under Russian and EU law. After examining accumulated legal basis and theoretical material, the author makes conclusions on the possibilities for improvements in the Russian private international law on financial derivative contracts, defining financial derivatives and regulation of close-out netting taking into account the experience of the European Union.