What will stop swap counterparties hitting this? Inserting new clauses into derivatives contracts could be the final piece of the solution to the too-big-to-fail conundrum that has vexed regulators since the collapse of Lehman Brothers in 2008. The industry group for the $700 trillion global swaps market, the International Swaps and Derivatives Association (ISDA), is revising international protocols to impose a temporary pause that would prevent counterparties from terminating swap trades with a failing bank for up to 48 hours.
August 25 2014