U.K. Financial Law Panel Notice Boosts Legal Status Of FX Netting

REGULATIONS

The U.K. Financial Law Panel (FLP) has released an updated guidance notice on foreign exchange netting from the City of London Law Society that further strengthens the legal basis for netting in the U.K. and takes note of the International Foreign Exchange Master Agreement (Ifema).

The FLP, which is sponsored by the City of London and the Bank of England, first issued a more general guidance notice on netting of counterparty exposure (including interest-rate swaps) in November 1993 that gave