Arbitration in International Finance - The Emergence of P.R.I.M.E

Abstract

Arbitration in international finance remains relatively rare but creates special problems in asset backed financings and in matters of set-off and netting where findings of the tribunal concerning ranking affect third parties or may also intrude on bankruptcy proceedings. A new arbitration organization called P.R.I.M.E has been set up in the Hague to deal with matters of this nature. It will then also have to deal with regulatory issues. These aspects are explored in this paper which identifies a great number of other issues likely to arise in financial arbitrations without attempting to give full answers.

Keywords: international arbitration, property matters, ranking and priorities, effect ergo omnes, effect of regulation

JEL Classification: K11, K41