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

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a 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