Erscheinung:09.06.2016 | Topic Risk management BaFin announces provision in response to today's decision of Federal Court of Justice on netting
In response to today's decision of the Federal Court of Justice (Bundesgerichtshof) (ref. no. IX ZR 314/14) on the validity of the master agreement on financial futures transactions which is customary in the German banking industry, the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) will shortly issue a provision.
This is intended to ensure legal certainty until the German Insolvency Code (Insolvenzordnung –InsO) is potentially amended. The Federal Ministry of Justice and Consumer Protection (Bundesministerium der Justiz und für Verbraucherschutz) and the Federal Ministry of Finance (Bundesministerium der Finanzen) have announced such an amendment should the decision have implications extending beyond the scope of this individual case.
