Ashurst non-netting opinion on China splits lawyers
EU banks using opinion for margin exemption, at possible cost of capital savings
An exemption in Europe’s derivatives margining rules has given law firms the power to deliver margin savings for their bank clients, but only at the risk of torpedoing hopes for future capital relief.
The debate centres on China, where Ashurst is thought to be the only big, international firm currently issuing legal opinions that netting is unsafe – the basis for the European margin exemption. So far, its peers have not followed suit, with some lawyers claiming this is because a so-called non
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