China regulator to outline legal thinking on close-out netting
Coronavirus could delay things, but authorities are taking small steps on a thorny issue
In what seems a change of direction, China’s banking regulator is hashing out a position on close-out netting for derivatives with the country’s Supreme Court, an agreement that could come by the third quarter, sources say. But market participants warn there are still plenty of hurdles to be cleared before banks can look forward to the margin and capital benefits of a positive netting opinion.
“It goes back to whether the industry finds it persuasive enough, and I just don’t have the answer to
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