Isda set to draft China netting opinion
Banks could be in a position to turn on close-out netting in China by third quarter
The International Swaps and Derivatives Association plans to recognise China as a jurisdiction in which close-out netting can be applied, in a legal opinion set to be published later this year. The move comes after China passed a new law containing provisions that the industry association says provide long-awaited clarity on the legal enforceability of close-out netting for derivatives transactions in the onshore market.
The go-ahead for banks to apply netting in China should usher in a new phase
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