Banks begin China close-out netting work after Isda opinion
Rise in collateralised transactions will be next step, dealers say
Foreign banks in China are starting work on implementing close-out netting for derivatives transactions, after the International Swaps and Derivatives Association issued a legal opinion that provides long-awaited recognition that the practice is enforceable under Chinese law.
Isda’s netting opinion, published on August 1, comes on the same day that China’s futures and derivatives law takes effect
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