Softened EU swap stay still threatens margin hike

Moratorium cut to two days, but pre-resolution stay could make EU a non-netting jurisdiction

Step up? Is going from five days to two days a move in the right direction?

Two steps forward, one step back is the idiom being used by swap market participants to describe the latest European Union proposals on moratorium powers under the updated Bank Recovery and Resolution Directive (BRRD). 

The controversy revolves around regulators’ powers to stay swap counterparties from closing out their trades with a bank that enters resolution. If this happens before the resolution authority has a chance to move the portfolio to a bridge bank or sell it to another market playe