Agreement between large banks to secure the financial system in effect as of January 1st

Agreement between large banks to secure the financial system in effect as of January 1st

The world's larger banks have reached an agreement, which be effective from January 1st, and which changes the operating regulations on the derivatives market. Some 7,000 billion derivatives are traded on the global market and the changes aim to ensure the security of the global financial system (i.e. non-collapse) if any of the banks face bankruptcy.  The banking institutions have decided to abandon the automatic contract close-out process usually followed if a financial institution is in trouble.

The banks signing the agreement are Bank of America, Bank of Tokyo-Mitsubishi, Barclays, BNP Paribas, Credit Agricole, Credit Suisse, Citigroup, Deutsche Bank, Goldman Sachs, JPMorgan Chase, HSBC, Mizuho Financial Group, Morgan Stanley, Nomura, Royal Bank of Scotland (RBS), Societe Generale, UBS, Sumitomo Mitsui and UFJ.

(Source: Belga)  


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