Ashurst non-netting opinion on China splits lawyers

EU banks using opinion for margin exemption, at possible cost of capital savings

china-abacus
Just how enforceable are netting arrangements with Chinese counterparties?

An exemption in Europe’s derivatives margining rules has given law firms the power to deliver margin savings for their bank clients, but only at the risk of torpedoing hopes for future capital relief.

The debate centres on China, where Ashurst is thought to be the only big, international firm currently issuing legal opinions that netting is unsafe – the basis for the European margin exemption. So far, its peers have not followed suit, with some lawyers claiming this is because a so-called non-n

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 indvidual account here: