In recent years, we have seen Chinese authorities seeking to develop China's derivatives market and further opening up domestic market to foreign participants. However, the lack of legal certainty on netting under PRC law has been a hurdle on the growth of China's derivatives market.
As a prevalent understanding, the recognition of enforceability of close-out netting is one of the most effective steps towards establishing a safe and efficient derivatives market. It could permit parties to reduce their obligations to a single net payment due from one party to another, mitigating credit risks associated with derivative contracts and reducing the potential for market disruption in the event of a default.
Notably, in October 2021, the draft PRC Futures and Derivatives law was introduced for second reading at the Standing Committee of the National People's Congress of China, which represents the first step in China's legislative history to expressly acknowledge the enforceability of close-out netting at a national law level.
In that end, this session will cover the following sections:
1. Overview of the current legal position on the enforceability of the close-out netting regime under PRC law
2. Close-out netting arrangements under the PRC Futures and Derivatives Law (Draft) and issues pending clarification
3. Outlook
SPEAKER:
TieCheng Yang
Partner- Han Kun Law Offices (Beijing)
TieCheng Yang is a Beijing-based partner of the Banking and Finance group at Han Kun Law Offices. Before joining Han Kun, TieCheng was a partner at Clifford Chance, where he headed the firm's financial regulatory practice in China. The China Business Law Journal listed TieCheng in December 2017 as one of the top 100 lawyers in all of China.
TieCheng has over 20 years' experience advising clients on China's financial markets, including RMB internationalization, banking, bonds (Panda Bonds and Dim Sum Bonds), securities and insurance, derivatives, structured products, the Stock Connects, the Shanghai Free Trade Zone, fund investment (QFII/RQFII, QDII and RMB funds), data protection, bank privacy, cyber-security and Fintech. TieCheng has rich experience in the review of derivatives agreements, including ISDA and China counterparts, NAFMII and SAC agreements. He focuses on financial regulations, and has over the years made significant contributions to the development of China's financial market. TieCheng's clients include domestic and foreign multinational corporations and financial institutions.
TieCheng is a native Mandarin speaker and is fluent in English.
TieCheng is a member of NAFMII's Legal Committee, NAFMII's Repo Master Agreement Drafting Committee, and Asia Pacific Arbitration Academy Committee of China Academy of Arbitration Law.
TieCheng received his B.A. from Peking University and his LL.M. from NYU School of Law.
EVENT DETAILS:
Date: Thursday, 7 April 2022
Time: 1:00 pm to 2:00 pm
Location: Webinar links will be sent upon registration
CPD Points: CPD points have been applied for. Please note you need to be logged in for the full duration of the webinar to qualify for CPD points. Unfortunately, points cannot be applied for members who join the webinar via telephone link.
