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The world's biggest banks have agreed to change rules that govern the $700 trillion derivatives market, the Financial Times reported on Tuesday October 7.
Eighteen banks, ranging from Credit Suisse Group AG to Goldman Sachs Group Inc, have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, the newspaper said, citing people familiar with the matter.
The International Swaps and Derivatives Association (ISDA), the body leading the negotiations with regulators on behalf of the industry, said last month that a contractual solution for a temporary stay on derivatives "close outs" was progressing well.
Financial Times: Banks agree to new derivatives rule book (subscription required)