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022			_a0031-7721
040			_cUM Bansalan College LIC
082			_aBPer. 340 _bP538
100			_aGeronimo, Russell Stanley Q. _914537
245			_aUnderstanding Financial Derivatives through the Civil Code/ _cby Russell Stanley Q. Geronimo
260			_aDiliman, Quezon City, Philippines: _bUniversity of the Philippines College of Law
300			_a28 pages
310			_aQuarterly
362			_aFebruary 2018
440			_aPhilippine Law Journal _vVol.91, No.1(February 2018) _x0031-7721 _914528
520			_aIt is one thing to understand derivative transactions in finance, and it is another thing to understand their legal nature within the framework of the law of obligation and contracts. When their contractual validity and enforceability are in dispute, it is lawyers and judges who are called to the task of defining and interpreting their judicial character and effects, not the financial engineers who design them or the fund managers who use them. This paper proposes a way of understanding financial derivatives from the viewpoint of legal professionals, pursuant to the most authoritative statutory guidance on contractual defects: the Civil Code. First, this paper shows why textbook definitions of financial derivatives are inadequate for the purpose of legal analysis, particularly when contractual validity and enforceability issues are involved. Second, it examines the judicial character of the three major classes of derivatives (forwards, swaps and options), and proposes legal definitions that distinguish these instruments from other securities, pooled investments, insurance, and wagering transactions. From this, it extrapolates a general legal definition of derivatives. Finally, this paper applies the proposed legal definitions in examining the legal status of (I) Philippine index futures, (ii) bilateral hedging contracts in the Wholesale Electricity Spot Market, and (iii) Philippine Depository Receipts.
650			_aFinance - Law and legislation _914538
650			_aFinance - Lability (Law) _914539
650			_aFinance - Civil Code _914540
942			_2ddc _cBPER.
999			_c9465 _d9465