Posted by: mulrickillion | March 20, 2009

New Master Agreement for Financial Derivatives in China (March 18, 2009) — 中国银行间市场金融衍生产品交易主协议(2009年版)

by M. Ulric Killion

“On March 16,  2009, the China Interbank Market Financial Derivatives Master Agreement (2009 version) (NAFMII Master Agreement (2009 version)) as well as a relevant notice (NAFMII Notice (No.5)) by the National Association of Financial Market Institutional Investors (NAFMII) was released. This is the latest step by the Chinese authorities to regulate and further support the development of the financial derivatives market in China.”

The NAFMII Master Agreement (2009 version) provides a uniform documentation approach for interbank market participants involved in financial derivatives transactions. It was made effective from March  16, 2009, with a 6 month transitional period. . . .

Background

“The NAFMII Master Agreement (2009 version) was formally adopted by a notice (PBOC Notice (No.4)), dated March 11, 2009, issued by the People’s Bank of China (PBOC), which confirmed that PBOC and the State Administration of Foreign Exchange (SAFE) had approved the promulgation of the NAFMII Master Agreement (2009 version). . . .

While the NAFMII Master Agreement (2007 version) and CFETS Master Agreement have been well received in the market, the cross-over between the two master agreements has given rise to a range of technical and legal issues, particularly in relation to the single agreement and close-out netting arrangements. The NAFMII Master Agreement (2009 version) goes a long way to addressing those concerns.  .  .  .

>> Read the full text of the NAFMII Master Agreement (2009 version) or  中国银行间市场金融衍生产品交易主协议(2009年版)文本 here:

备案地址: 北京市西城区金融街28号盈泰中心2号楼6层中国银行间市场交易商协会交易规范部

邮政编码:100140

联 系 人:刘芳菲

联系电话:010-66539030

传 真:010-66539028

中国银行间市场金融衍生产品交易主协议.pdf 

中国银行间市场金融衍生产品交易转让式履约保障文件.pdf

中国银行间市场金融衍生产品交易质押式履约保障文件.pdf

中国银行间市场金融衍生产品交易定义文件.pdf

>> Read the People’s Bank of China Notice No. 4 —  中国人民银行公告〔2009〕第4号 here.

Sources:

Mallesons Stephen Jaques.

National Association of Financial Market Institutional Investors — 中国银行间市场交易商协会.

People’s Bank of China — 中国人民银行.


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