I applied for the Winter Vacation Scheme and awaiting results. Make sure you link the answer to the firm. I would try and focus on something a bit more specific and that has already happened that you can be more certain about. The election is today so after what happens I guess you could then talk with more certainty about its impact. Here's my answer.
In July 2017, the FCA announced the discontinuation of the London Interbank Overnight Rate (LIBOR) and from 2021, it will no longer compel panel banks to contribute to LIBOR. Considered the world’s most important number, it is calculated by taking a cross-section of the average interest rate that banks would lend to one another. $250-400 trillion worth of financial contracts, including derivatives, loans, bonds and mortgages reference this rate. However, global regulatory investigations have revealed the rate has been manipulated for profit, thus undermining its credibility.
Financial contracts, like bond instruments, may contain fall-back provisions for the temporary unavailability of LIBOR. However, they do not address the rate’s discontinuance. Contracts that will not mature by 2021 and do not provide adequate fall-back language will need amending.
Reed Smith’s Debt Capital Markets practice is well placed to advise on these amendments, particularly those that involve UK/US cross-border transactions. The firm will also need to monitor and advise on any regulatory, tax, or accounting impacts the replacement may have on its clients.
This transition will involve an extensive repapering exercise and provides a significant opportunity for the firm to demonstrate its innovation capabilities. By automating this process with a piece of AI software, it can save money for clients and time for the firm.
In March 2018, the Government lowered the threshold at which it can intervene in mergers on the grounds of national security concerns. The new limit will apply to firms that develop or produce items for military use, computer hardware or quantum technology and whose revenue exceeds £1million (down from £70m).
Technology M&A deal volume is almost at an all-time high.
Reed Smith’s Anti-Trust and Competition practice can utilise its extensive technology sector knowledge to guide its clients through government regulation and intervention to gain the necessary merger clearances.
