Commodity Trading and Finance

We have a market leading commodities and energy trading practice from which we advise investment banks, brokers, dealers, trading houses, hedge funds, producers, suppliers and users, exchanges and trade associations.

The work we do includes advice relating to trading commodity and energy derivatives, both on exchange and OTC, and the structuring and regulation of international trading businesses. We also advise on the regulation of market conduct and market abuse, the structuring of financial instruments relating to commodities/energy, physical marketing, trading and supply and energy regulation, commodity and inventory financing (including Islamic finance), and dispute resolution, regulatory investigations and enforcement. 

Our team have a mixed background having spent time in house at regulators and within the industry. Because of this we have a broad range of skills within the team, including the areas below.

Financial markets regulation

Our financial markets regulatory practice advises on all aspects of the regulation of commodity and energy derivatives markets and trading. This extends to the creation and licensing of broking/dealing/trading business, conduct of business, systems and controls environment and the structuring and operation of cross border business. It also undertakes broader policy and procedure reviews for clients, including around anti-money laundering and anti-corruption legislation.

Market conduct - commodities

We are well versed advising clients on matters relating to the application of the market conduct and market abuse regime. We also work with clients to navigate exchange and regulatory rules, and other considerations that impact market behaviour.

Regulatory investigations and enforcement, and litigation and dispute resolution

This team focuses exclusively on contentious work for financial institutions. Working on high value, complex matters for investment banks, clearing banks, investment and fund managers, securities houses, commodities and futures brokers and dealers and other financial institutions operating in the UK and international financial markets.

Islamic finance

Transactions involving commodities have played an important part in the development of the Islamic finance industry and an understanding of the relevant trades, risks and market practices is essential for any participant in the Islamic finance market. We have advised both Islamic and conventional financial institutions, as well as corporate and government bodies, on a wide range of structures.

We have also advised extensively on the development of Shariah-compliant liquidity management structures involving trades in commodities, as well as the structuring and transacting of a wide variety of Islamic structured products as synthetic funds and hedging structures

Energy regulation and competition

Our experience of the application of the whole range of competition law, including, merger control, behavioural issues, regulatory investigations and litigation, continues to support our energy clients where they need us most. We advise clients involved in investigations by the EU Commission and by national regulators, including Competition Act investigations by Ofgem. We also advise clients, including those involved in trading activities, on compliance programmes and business continuity issues in the face of dawn raids and regulatory investigations.

Carbon and emissions trading

Closely aligned with our clean-tech and environmental finance practice, we advise on all aspects of emission reduction and renewable energy projects that create carbon and other emission related tradable commodities. We have helped clients participate in emissions trading systems including the UK ETS, the EU ETS and the unregulated markets trading VERs and VCU’s. This includes the tax and accounting treatment of carbon assets and liabilities

Physical supply and storage contracts

The team advise on the sale, transportation and storage agreements for commodities including natural gas, crude oil and refined liquids (such as propane, butane, condensate, bitumen) from and to refineries, processing plants and storage facilities and to service stations, as well as long term supply contracts relating to various commodities.