Close Out Netting in China - A Key Building Block for Derivatives Market Development

The top four of the ten largest banks by a u m globali are chinese. Without netting, these entities often face higher transaction costs and must provide margin on a gross basis when they enter into financial transactions with foreign counter parties. The draft legislation was submitted for second reading of the standing committee of the national people's congress in october of 20 21. It talks about trading clearing and similar, comparable region for o t c derivatives.