By Katy Burne of the Wall Street Journal
Global regulators are pushing for significant changes to derivatives contracts in a bid for more time to resolve potential failures by financial institutions and avert a repeat of the 2008 crisis, a Wall Street trade group said.
The Financial Stability Board, a Basel, Switzerland, coordinator of national financial-sector overseers, wants traders to temporarily waive rights close out swaps trades when a firm runs into trouble and to certain swaps payments they may be owed, giving regulators a few extra business days to sort through that firm’s obligations and stave off a wider calamity, the International Swaps and Derivatives Association said Tuesday at a conference in New York. For more,
see the Wall Street Journal Article