Lawyers divided over Isda’s China netting memo

New legal guidance spells out how close-out netting may be achieved, but critics say it’s impractical

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Lawyers are divided over whether a new memo from the International Swaps and Derivatives Association can help resolve uncertainty surrounding close-out netting in China – a crucial step given international regulations now require counterparties to post variation margin on new non-cleared swap trades.

“You can see a clear divide even among law firms of the same market reputation,” says one Singapore-based derivatives lawyer. “If you go to different firms active in the derivatives market, you

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