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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).

Further information

This case summary is part of the Allen & Overy Legal & Regulatory Risk Note, a quarterly publication.  For more information please contact Karen Birch –, or tel +44 20 3088 3710.

Legal and Regulatory Risk Note

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