Case Studies

Case Studies 2017-09-23T14:41:08+00:00

HSH Nordbank AG v Intesa Sanpaolo SpAHSH Nordbank AG v Intesa Sanpaolo SpA

Solum provided an expert witness on matters relating to the structure, nature and effect of certain derivatives contracts. As part of the engagement, Solum provided:

  • a review of certain interest rate swap transactions and their characteristics including analysis of various payments flows;
  • an analysis of the effectiveness of certain hedging transactions; and
  • retrospective valuations of various interest rate swap transactions.

Lehman Brothers Finance S.A. (in liquidation) v Sal. Oppenheim JR. & CIE. KGAA

Solum provided an expert witness in respect of the quantification of Loss and calculation of Settlement Amount in relation to certain equity derivatives transactions under ISDA. As part of the engagement, Solum considered matters relating to timing and procedures for obtaining quotations. In addition an independent assessment of Loss was performed.

  • “Of the two experts I found [Solum Expert] more reliable, persuasive and consistent.” Except from the Approved Judgement of Mr Justice Burton

Lehman Brothers International (Europe) (in administration) (“LBI”)

Solum has provided expert witness services in connection with a number of disputes relating to the close-out of derivatives and other financial contracts following on from LBIE’s entry into administration. As part of our engagements Solum’s services have included:

  • consideration of the close-out process followed under both ISDA and GMRA documentation; and
  • valuation of various products including corporate and inflation-linked bonds, equity derivatives, interest rate derivatives and credit derivatives (corporate, loan and ABS underlyings).

Solum was appointed to provide expert witness services in relation to market practice surrounding the pricing and marketing of CSOs in connection with a potential misselling dispute.

As part of the engagement, Solum considered the process that was followed by the arranging bank. Solum provided a thorough analysis of the explanations and disclosures provided by the bank including transaction mechanics, risk factors and scenario analysis. Solum reviewed exchanges between the arranging bank and the client as well as supporting documentation and provided information as to prevailing market practice based upon direct knowledge of the structuring and market of CSOs at the time.

In addition, Solum performed pricing of the relevant CSO structure along with several restructuring proposals.

Solum was appointed to provide expert services in relation to a regulatory investigation into potential market manipulation.Solum provided forensic analysis of the relevant trading activities as well as information regarding market practices surrounding the hedging of certain exotic derivatives.

Solum was appointed to provide consultancy services relating to the sale of various FX options. Solum opined on the suitability of the products for the end user and the adequacy of the information provided by the relevant party in order to assist in determining the validity of potential misselling claims.