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German firm Hengeler Mueller Weitzel Wirtz has put together the innovative system that will clear the majority of euro transactions once the single European currency is introduced. Despite claims that it was impossible to produce a multilateral cross-border netting system whose rights and obligations would be upheld in the various jurisdictions in insolvency situations, the new Single Obligation structure, which provides the basis for the EBA clearing system, meets all criteria and has won acclaim from all participating countries.

Hampered by a small domestic market, Danish firms are probably as big as they can get, and there is little scope to open overseas. But firms are thinking of links with firms abroad. Barbara Galli reports

US natural gas and electricity company Enron is buying UK water utility Wessex Water. The value of the transaction is £1.4 billion (US$2.3 billion). Advising Enron is UK firm Freshfields, London. The team of lawyers is headed by partners Edward Brahm (corporate), Mark Rawlinson (corporate) and Deidre Trapp (competition).

In Resolution 658E of June 25 1998, the Central Bank of Chile amended the Compendium of Foreign Exchange Regulations of the Central Bank by reducing from 30% to 10% the mandatory deposit requirement or Encaje on foreign exchange brought into Chile as investments, loans or capital contributions.

A recent decision of the Copenhagen City Court confirms that Danish courts take a strict view on insider trading (see International Financial Law Review, March 1997, page 58). A board member of a Danish company was sentenced to five months' imprisonment plus confiscation of about US$100,000 of profit.

Act No. CXII/1996 on credit institutions and financial enterprises permits the setting up of a centralized domestic electronic database. The passing on and/or accessing of database information on debtors by financial institutions and investment companies does not constitute a violation of banking secrecy. However, this database should not contain information on natural persons. The Act was amended with effect from January 1 1998; it is now permissible to store and provide information on natural persons. The difference between data on private persons and data on non-private persons is that information on private persons is limited to a 'blacklist', ie only those debtors are recorded who have not met their obligations within 90 days of the due date. On the other hand, debtors who are non-private persons are always registered as soon as they conclude a loan or quasi-loan agreement, irrespective of whether they are in default of payment.

Article 22 of Legislative Decree No. 58 (through which a unified text of rules on the financial markets has been approved) sets out basic principles on the segregation of patrimonies of financial intermediaries and clients.

The proposed Council Directive on savings income was circulated by the European Commission on June 4 1998. Its rationale is the perceived scope for tax avoidance created by a lack of coordination of national systems for the taxation of interest payments on savings. It will also tax interest on public debt securities and bonds.

Allen & Overy's Frankfurt office has poached two partners from rival firms. Johannes Bruski was a partner with German firm Bruckhaus Westrick Heller Löber. Reinhard Hermes was formerly a partner in US firm Morgan, Lewis & Bockius's Frankfurt office. Bruski specializes in asset finance and cross-border leasing. He is also experienced in corporate mergers & acquisitions. He joins Allen & Overy's asset finance practice.

Wilde Sapte, the UK firm that intended to link with Arthur Andersen, is encountering further problems after the failure of its merger in June. Lawyers are continuing to leave, including Paris partner Thomas McDonald and assistant Matthieu de Varax. The New York office has closed and the resident partner Diarmuid Brennan and his assistant have left. McDonald, who specializes in asset finance, is to join White & Case's Paris office with two assistants. De Varax is moving to Simmons & Simmons' Paris office with two other lawyers. He will be made up to partner. The moves leave the Paris office with two remaining partners.