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

Yuan and hourglass
Countdown to bankruptcy: China’s 30-day grace period is causing legal confusion

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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: