Judgment No. 8770 of the Supreme Court of Cassation in United Sections issued on 12 May 2020, far from providing clarity, has generated more uncertainty in the derivative transactions between financial intermediaries and their clients. It is worth reviewing what was ruled by this sentence in relation to actual market practice, which is based on rational and consistent logic typical of financial intermediation activity, highlighting the criticism that this ruling may cause on market operators, on financial reporting and on legal repercussions, particularly for an important new category of financial instruments, the so-called Deal-Contingent derivatives.
