THE IMPORTANCE OF CHOICE OF LAW AND FINALITY TO PvP, NETTING AND COLLATERAL ARRANGEMENTS

The authors argue that two of the significant legal issues that must be solved if cross‐border payment versus payment, netting and collateral arrangements are to achieve their full potential involve choice of law and finality. First, the parties must be able to determine, in advance, what law will govern and, second, each payment, netting event or security interest must achieve a sufficient degree of finality under applicable law.