BoE and FDIC campaign for end to ‘early termination’ of derivatives contracts
The Bank of England (BoE) is one of four major international authorities pushing for changes in the universal language used in derivatives contracts – changes that would prevent the contract holders involved from triggering an "early termination" of the agreement in the wake of a counterparty going bust.
The majority of over-the-counter derivatives transactions are underpinned by a "master agreement" sculpted by the International Swaps and Derivatives Association.
Alongside the BoE, the Federal
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