A bankruptcy bill with a provision for netting supported by the International Swaps and Derivatives Association went to the U.S. Senate last week. Kimberly Summe, general counsel at ISDA in New York, said the bill would expand the definition of swap agreement by including new products such as equity, credit, weather, emissions and inflation derivatives. It would also create certainty that close-out netting is enforceable on these instruments in the U.S.
Twelve associations including ISDA and The Bond Market Association sent a letter of support to the Senate because they say the current bankruptcy bill, last amended in 1990, is outdated.
