Search: Close-out netting
RBA Glossary definition for Close-out netting
Close-out netting – An arrangement to settle all contracted but not yet due liabilities to, and claims on, an institution by a single payment, immediately upon the occurrence of one of a list of defined events such as the appointment of a liquidator to that institution.
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Box B: Central Clearing of Over-the-counter Credit Derivatives
10 Mar 2009
FSR
– March 2009
were owed upon close-out, and in co-ordinating the decentralised replacement of defaulted trades. ... Lehman's open positions were ascertained quickly and unwound with little uncertainty regarding counterparty risk or disruption to the broader market,
https://www.rba.gov.au/publications/fsr/2009/mar/box-b.html
Central Clearing of OTC Derivatives | Central Clearing of OTC Derivatives in Australia June 2011 | Consultations
7 Jun 2011
Consultations
In many jurisdictions, the legal robustness of these netting and close-out arrangements is underpinned by legislation. ... In Australia, the relevant legislation is the. Payments Systems and Netting Act 1998.
https://www.rba.gov.au/publications/consultations/201106-otc-derivatives/central-clearing-otc-derivatives.html
Key Features of Repo CCPs | Central Clearing of Repos in Australia: A Consultation Paper | Consultations
6 Mar 2015
Consultations
CCP could realistically close out or hedge its exposure to a defaulted participant. ... Since multilateral netting may have decreased the overall exposure to the defaulted participant, and the CCP can coordinate the close out of exposures to the
https://www.rba.gov.au/publications/consultations/201503-central-clearing-of-repos-in-australia/key-features-repo-ccp.html
Oversight of Clearing and Settlement Facilities
11 Sep 2008
PSB Annual Report
– 2008
The stress-test approach is designed to ensure that ACH has sufficient liquidity to assume a defaulter's cash equity settlement obligations and close out its outstanding derivatives positions. ... The Bank has, therefore, been in close dialogue with ASX
https://www.rba.gov.au/publications/annual-reports/psb/2008/oversight.html
Performance of Australia's Payments Infrastructure during the Market Turbulence
2 Oct 2009
PSB Annual Report
– 2009
Initial margins are collected by the central counterparties to cover any losses arising in the close out of derivatives positions should a default occur. ... and a requirement to close out positions remaining unsettled on the fifth day after trade date.
https://www.rba.gov.au/publications/annual-reports/psb/2009/performance.html
Costs and Benefits of a Repo CCP – Issues for Consultation | Central Clearing of Repos in Australia: A Consultation Paper | Consultations
6 Mar 2015
Consultations
A CCP also offers the benefit of coordinated close out in the event of a participant default. ... If not, why not? Q23. Do you see benefit in settlement netting by line of security?
https://www.rba.gov.au/publications/consultations/201503-central-clearing-of-repos-in-australia/costs-benefits-repo-ccp.html
FSR Developments in the Financial System
10 Sep 2008
FSR
– September 2008
Throughout the recent turmoil in financial markets the various regulators in Australia have been in close contact with one another. ... ASX has since increased the fees applying to failed trades and has announced prospective new arrangements for the
https://www.rba.gov.au/publications/fsr/2008/sep/dev-sys-infra.html
Oversight of Clearing and Settlement Facilities
2 Oct 2009
PSB Annual Report
– 2009
of cash equities trades, as a result of the netting of obligations in the batch. ... to close out the position in the market.
https://www.rba.gov.au/publications/annual-reports/psb/2009/oversight.html
Oversight of Clearing and Settlement Facilities
12 Sep 2014
PSB Annual Report
– 2014
Also taking into account multilateral netting of participants' obligations, average daily settlements between participants associated with these trades increased marginally in 2013/14 to $8.3 billion. ... Reflecting the lower liquidity of OTC derivatives
https://www.rba.gov.au/publications/annual-reports/psb/2014/oversight-clearing-set.html
The Australian Repo Market | Central Clearing of Repos in Australia: A Consultation Paper | Consultations
6 Mar 2015
Consultations
The GMRA provides for close-out netting in the event one of the counterparties defaults. ... Close-out netting allows an institution to terminate and settle the net value of all contracts with a particular counterparty immediately upon the occurrence of
https://www.rba.gov.au/publications/consultations/201503-central-clearing-of-repos-in-australia/australian-repo-market.html