Definition

Forward pricing (financial law) [De.: Terminpreis, Fr.: fixation de prix à terme, Gr.: προθεσμιακή τιμολόγηση] (See also : financial derivatives, delivery price, rational pricing, OTC, forward contract, future contract) = the process of fixing the price of an asset or a commodity in a forward contract (of a derivative nature) which is a private agreement between two parties, who can negotiate the terms and conditions, to buy or sell an asset or a commodity at a specified future time at a price agreed today and paid at maturity, which is the time the asset/commodity will change hands.

Useful links

Legislation

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32016R1033&from=EN -Regulation (EU) 2016/1033 of the European Parliament and of the Council of 23 June 2016 amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories [English]

http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012R0648 - Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 on Over-The-Counter derivatives, central counterparties and trade repositories [English]

https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006072026 – French financial and monetary code (Livre II: The financial products, art.L211-1 – art.L232-1) [French]

http://www.legislation.gov.uk/uksi/2015/348/pdfs/uksi_20150348_en.pdf- The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (Amendment) Regulations 2015, United Kingdom [English]

Organisations and associations

https://www.esma.europa.eu/ - European Securities and Markets Authority

https://www.sec.gov/ - U.S. Securities and Exchange Commission

http://www.amf-france.org/ - French Financial Supervisory Authority

https://www.bafin.de/EN/Homepage/homepage_node.html - German Federal Financial Supervisory Authority

https://www.fca.org.uk/ - British Financial Conduct Authority

http://www.aedbf.eu/en/?noredirect=en_US – European Society for Banking and Financial Law

https://americanlegalfin.com/ - American Legal Finance Association

Online Publications

http://blogs.law.columbia.edu/glawfin/files/2013/10/09-Diverging-Derivatives.-Law-Governance-and-Modern-Financial-Markets-by-Bruce-G.-Carruthers.pdf - Carruthers, B., 2013, Diverging derivatives: Law, governance and modern financial markets. Journal of Comparative Economics, 2013, vol. 41, no 2, pp. 386-400. [English]

http://orff.uc3m.es/bitstream/handle/10016/5597/HowTo_WP_2009_preprint.pdf?sequence=1 De Frutos, M.-A., Fabra, N., 2012, How to Allocate Forward Contracts: The case of electricity markets, European Economic Review, 2012, vol. 56, no 3, pp. 451-469. [English]

http://web.mit.edu/rpindyck/www/Papers/OilPriceSpecNBER0413.pdf - Knittel, C., Pindyck, R., 2013, The simple economics of commodity price speculation, Working Paper 18951 National Bureau of Economic Research, USA [English]

http://openaccess.city.ac.uk/2574/1/WHO%20GOVERNS%20FINANCE.pdf - Pagliari, S. 2012, Who governs finance? The shifting public-private divide in the regulation of derivatives, rating agencies and hedge funds, European Law Journal, vol. 18, n°1, pp. 44-61 [English]

http://www.modernmoneynetwork.org/sites/default/files/biblio/Legal%20Theory%20of%20Finance.pdf-  Pistor, K., 2013,  A Legal Theory of Finance, Columbia Law School, Public Law & Legal Theory Working Paper Group,  Paper Number 13-348 [English]

https://cdr.lib.unc.edu/indexablecontent/uuid:88394e2d-97a3-450e-b5b6-b431dafd1dda- Seshasainam, P., 2008, Consumer options and forward pricing: theory and empirical analyses in ticket markets, University of North Carolina [English]

Publications

Best, M., Soulier J.-L., 2015, International securities law handbook, 4th edition, Netherlands, Wolters Kluwer law & business [English]

Bösch, M., 2014, Derivate: Verstehen, anwenden und bewerten, 3rd edition, Germany, Vahlen [German]

Castellano G., Jeunemaïtre A., Lange, B., 2012, Reforming European Union Financial Regulation: Thinking through Governance Models, European Business Law Review, Vol.23, Issue 3 (2012), pp. 409-446 [English]

Cherednychenko, O., Jansen, C., 2008, Principles of European Law on Financial Service Contracts?, European Review of Private Law, Vol.16, Issue 3 (2008), pp. 443-468 [English]

Chiarella, C., He, X.-Z., Sklibosios C., 2015, Derivative Security Pricing: Techniques, Methods and Applications, Germany, Springer [English]

Le Saout, E., Théodore, J.-F., 2016,  Introduction aux marchés financiers, France, 5th edition,  Economica [French]

Spangler, T., 2010, Investment management: law and practice, UK, Oxford University Press [English]

 

By Vasiliki Fasoula