Termination rights protocol due by end of September

But concerns remain about effects on resolution and capital requirements

torn contract image

Derivatives dealers and regulators are set to agree by the end of September on a voluntary protocol designed to temporarily suspend banks' over-the-counter derivatives termination rights, with a view to signing up to it before the Group of 20 nations meeting in November, say sources. Concerns remain about its effect on bank resolution and capital requirements, however.

"The International Swaps and Derivatives Association is planning to have this draft protocol finished or close to finished by

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