China netting: industry raises concerns on cross-border trades
Filing requirement of new netting law could unfairly penalise trades from foreign banks
Foreign dealers have raised concerns that some cross-border derivatives trades could be left out of the scope of China’s new netting law if the wording around documentation filing is not tightened up.
China’s new futures and derivatives law, which is still in draft form, has been broadly welcomed by the industry – but a requirement for “the templates of the relevant master agreement and other model documents” to be filed with regulators before trades are eligible for close-out netting has
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