The Traderszone Network

Published in TZ Latest News 11 October, 2014 by The TZ Newswire Staff

Banks accept derivatives rule change to end ‘too big to fail’ scenario

The $700 trillion financial derivatives industry has agreed to a fundamental rule change from January to help regulators to wind down failed banks without destabilising markets. The International Swaps and Derivatives Association (ISDA) and 18 major banks that dominate the market will now allow financial watchdogs to apply temporary stays to prevent a rush to close derivatives contracts if a bank runs into trouble, the ISDA said on Saturday.

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