NEWSLETTER-2017

177 ARBITRATION LAW ing of the organizational models of the financial institutions, regula- tions and practices. Derivatives and Advisory Matters The Task Force confirms the rise of the application of arbitration on derivative related disputes as arbitration is more favorable, with the possibility to appoint a tribunal that has expertise in the field of derivatives, in comparison to litigation, which does not offer the same opportunities. Under advisory matters, international arbitration is found to be the most suitable dispute settlement method for M&As, and advisory work on them, as it contains confidentiality and ease of enforcement. It is noted that risk of reputational damage of an advisor in public hear- ings due to negligence is one of the fundamental concerns that lead parties to choose arbitration, while the costs are the main cause that reduce the amount of M&A disputes brought before arbitral tribunals 4 . Investment Arbitration The Report affirms the rise on the number of multinational in- vestment and partnership agreements. It is indicated that the bilateral investment treaties and free trade agreements are insufficiently protec- tive on investors and their products, and the definition of investment is unclear, which in turn reduce the predictability of investment protec- tion for financial institutions. With the new era of treaty negotiations, the uncertainties are likely to diminish, as the drafters of international investment agreements are referring more specifically to financial instruments. States are found to be less keen to solve sovereign debt restructuring, which in turn makes room for arbitrators. 4 Arnaud de La Cotardière / Claudia Cavicchioli, “ The Need for Confidentiality in Arbitration Proceedings Relating to Advisory Matters ”, Kluwer Arbitration Blog, accessed at: http://kluwerarbitrationblog.com/2016/12/26/need-confidentiality- arbitration-proceedings-relating-advisory-matters/, Date of Access: 12.02.2017.