Update On Recent Summary Judgment For Barclays In Interest Rate Swap Litigation

(1) Mark Thomas Raymond Bailey; and (2) MTR Bailey Trading Limited v. Barclays Bank plc [2014] EWHC 2882 (QB)

Summary

In a recent hearing in the Cardiff Mercantile Court, His Honour Judge Keyser QC (the Judge) considered various arguments advanced in relation to an interest rate swap.

Many of the points argued will be familiar to those who take an interest in swaps litigation, and the Judge's conclusions on the key points are summarised in this note. Those points include: the proper interpretation of COBS 9 and COBS 10 and the distinction between suitability and appropriateness; the entitlement of companies to bring claims for breach of COBS rules; and the effect which the regulatory regime may have on contractual obligations. Some of the claims advanced appear to be at the margins of the arguable in relation to this type of case. They were unsurprisingly rejected by the Judge and are not considered here.