Derivatives in Cross-Border Insolvency Proceedings

As regards close-out netting provisions and financial collateral arrangements, one of the main consequences of the recent financial crisis has been the review of the privileged status of these instruments. This paper describes, in general terms, these changes and analyzes the policy underlying them, in particular in relation to the conflict-of-laws dimension. The EU legislation will be used as an example of this relative change of paradigm. Since these changes have been inspired by supranational institutions, the analysis may also be applicable mutatis mutandi to others jurisdictions.