Are Your Counterparty’s Promises Enforceable?

Law360, New York (November 16, 2010, 4:46 PM EST) -- The recent surge in activity in the claims trading market in the wake of Lehman Brothers and other high-profile bankruptcies has created a backlog of open trades and heightened price volatility.

This is a perilous combination. The lack of standardized trading documentation and uniform trading conventions, as well as the dramatic influx of new counterparties into the claims market, are factors that have contributed to longer settlement time frames and increased uncertainty in the market.

Currently, settlement delays arise primarily from 1) the complexity of the...
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