Buy side may need ‘persuasion’ to give up termination rights
Counterparties that refuse to give up their rights could be subjected to “moral and regulatory persuasion”, says Bafin president, Elke König
Termination rights currently enjoyed by derivatives counterparties could make it impossible for resolution authorities to effectively resolve a big, failed bank – a barrier that must be torn down, according to Elke König, president of Germany's prudential regulator, the Bundesanstalt für Finanzdienstleistungsaufsicht (Bafin).
"If, as a resolution authority, you look at an organisation and have a
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