New laws in force – close-out netting in wholesale energy markets
A new Italian Competition Law (Legge annuale sul mercato e la concorrenza – the Law) came into force at the end of August. The most relevant aspect for financial institutions is the recognition of close-out netting in respect ofphysical commodities transactions entered into by participants in the wholesale energy markets.
This marks a significant improvement in the enforceability of close-out netting for Italian corporates and is the product of an important lobbying effort by the International Swaps and Derivatives Association (ISDA) and the European Federation of Energy Traders (EFET).
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