Banks look to pass CCP investment losses to clients
End-users set to bear brunt of losses, say lawyers
Banks are seeking to pass through central counterparty (CCP)-related operational and investment losses to end-users, according to derivatives lawyers.
"A number of banks clearing at LCH.Clearnet's SwapClear came to us as they wanted to know whether the legal documentation they have with their clients is sufficiently broad to capture this sort of event. There could be an argument that it was but, basically, what we are providing is standard wording to make it clear they can pass those losses on
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