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Hot Tax Topics for Multinational Groups, in the US, the EU and Beyond

Cleary M&A and Corporate Governance Watch

The following post was originally included as part of our recently published memorandum “ Selected Issues for Boards of Directors in 2024” Impact of “Pillar Two” Global Minimum Taxation The push for global tax reform will continue to have a significant impact on large multinational groups in 2024.

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Carrot or stick? How the EU plans to reduce reliance on UK CCPs for derivatives clearing

The TRADE

Among the key topics discussed during Tuesday’s IDX panel exploring the future relationship between the UK and Europe was derivatives clearing post-Brexit, in particular relating to Euro denominated swaps. Either policymakers in the EU incentivises the migration or legislators make it mandatory using controversial “active accounts”.

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Mandatory buy-ins to be a ‘last resort’ under CSDR refit plans

The TRADE

With regards to the hot topic of settlement efficiency, the new regulation includes the preconditions for applying the highly controversial mandatory buy-ins which will only be introduced as a “measure of last resort”, where the rate of settlement fails in the EU is not improving and is presenting a threat to financial stability.

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UK settlement taskforce to deliver T+1 report in January as timeline debate rumbles on

The TRADE

If April 2026 was a designated date by the UK, this would be an enormous task for the EU given the number of markets and market infrastructures involved.

Trading 57
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The TRADE predictions series 2024: Market Structure – T+1

The TRADE

In fixed income, focus will remain on data transparency and whether consolidated tapes would be beneficial or detrimental to liquidity in the EU and emerging markets. The knock-on effects from the impending switch in May to T+1 settlement for US instruments need to be monitored and prepared for, particularly i n FX.

Trading 62
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Eurex focused on harmonising onto one risk management framework

The TRADE

In terms of what belongs in this ecosystem are long-term European government bond futures and options (Eurex is in the advanced stages of launching an EU bond future potentially in 2024), euro denominated interest rate swaps, futures and options on short-term Euro interest rates Euribor and €STR, as well as the repo business.”

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ESG Litigation: Derivative Claims Against Directors: Q&A

Cleary M&A and Corporate Governance Watch

Some other jurisdictions (for example, most EU member states) require a minimum percentage shareholding to bring such a claim. Climate-related derivative claims are on the rise in the US although CE’s claim is reportedly the first derivative claim of its kind in England or the EU. Are these cases on the rise?