Market participants are cheering a fix to US accounting rules that ensures derivatives used as hedges won't lose favourable accounting treatment if a user novates a trade to another counterparty. International standard-setters have no plans to make a similar clarification, however.
The US Financial Accounting Standards Board (FASB) issued an update on the effect of derivatives contract novations on existing hedge accounting relationships on March 10. The update clarifies that a derivative owner
The week on Risk.net, July 7-13, 2018Receive this by email