Interest rate swap case, positive outcome to our client

An important ruling of the Court of Appeal of Milan was filed today, in favour of our client defended by Atty Manuela Grassi and Atty Luca Traficante, on the subject of interest rate swap. Our client is a leading bank and the case was decided by the court who pinpointed the purpose of the contract under dispute. The judgement followed the case-law orientation which identifies the purpose of contracts like the one at issue with the exchange of differentials rather than the MTM. The latter, in fact, represents  “the replacement value of the derivative at a given time”, a substitution that, however, does not result to have taken place in practice, makes irrelevant the fact that, during the course of the relationship, the quantification of the MTM indicated in the contract has then changed.