The International Swaps and Derivatives Association has recently stepped up discussions with regulators in China and India to push through close-out netting regulations which would give greater certainty to the developing derivative markets. The association has been working with regulators in the two countries over the last year (DW, 12/23). Angela Papesch, director of policy and head of the Asia-Pacific office at ISDA in Singapore, said it is too early to comment on timing for legal drafts in China, but India is close to legislating on close-out netting.
In India, a drafted circular has been issued by the Reserve Bank of India and could be pushed into legislation in the coming months, while in China, the industry body is talking to the China Banking Regulatory Commission about netting, in hope of advancing regulations for the country's nascent derivatives market. "These are excellent steps we're seeing," added Papesch. "Enhanced regulatory certainty gives greater confidence to market players and allows them to be more engaged, bringing about market growth," she noted.
