Firms holding swaps contracts with a bank filing for U.S.bankruptcy protection would have to wait at least 24 hours beforedemanding collateral under new practices that may be adopted by theindustry this month.

The revision could make it easier for banks to satisfygovernment requirements for the “living wills” they must produce toshow how they'd unwind their businesses in an orderly fashion ifthey veered toward collapse.

The International Swaps and Derivatives Association (ISDA), themain industry group for the $700 trillion global swaps market,included the language in a draft of a new standard contract underpressure from U.S. regulators, said three people with knowledge ofthe talks. Regulators and industry lawyers meeting in London arenearing agreement on the draft, a copy of which was reviewed byBloomberg News.