German Federal Supreme Court Verdict

[Update] on the judgment (ref. no. IX ZR 314/14) from the Federal Court of Justice (Bundesgerichtshof - BGH) of 09 June 2016 on the netting of financial transactions based on the German master agreement on financial futures transactions (Rahmenvertrag für Finanztermingeschäfte).

On 09 June 2016 the Federal Court of Justice (Bundesgerichtshof - BGH) rendered a judgment (ref. no. IX ZR 314/14) on the netting of financial transactions based on the German master agreement on financial futures transactions (Rahmenvertrag für Finanztermingeschäfte). This judgment might have a far-reaching impact on netting agreements in Germany and could leave financial institutions with an enormous capital shortfall. Please read article in full