New York Governor Mario Cuomo is expected within the next few days to sign a bill that will close a centuries-old loophole that could be invoked to invalidate many derivatives and foreign exchange transactions.

As it stands, the loophole allows a counterparty to legally withdraw from an unprofitable trade if it has not signed a confirmation. The law originates from the English Statute of Frauds, which was passed well before the Revolutionary War, in 1677, and has never been revised.

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