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.
Search Results
2023
14 Dec 2022
Bulletin
Insights into the economy and financial system from teams throughout the Reserve Bank of Australia
https://www.rba.gov.au/publications/bulletin/2023/
Foreign Exchange Settlement Practices in Australia
10 Feb 1998
Bulletin
– February 1998
But the amount at risk can also be reduced by netting, provided it is legally enforceable. ... financial markets, a prerequisite to the participation of Australian banks in multilateral netting schemes for foreign exchange.
https://www.rba.gov.au/publications/bulletin/1998/feb/2.html
Australian OTC Derivatives Markets: Insights from the BIS Semiannual Survey
10 Dec 2012
Bulletin
– December 2012
Survey respondents report on a global consolidated basis, whereby the banks aggregate activity across their global operations (netting out intragroup transactions) and report in the country in which their global headquarters ... A third measure of market
https://www.rba.gov.au/publications/bulletin/2012/dec/5.html
Central Counterparty Interoperability
10 Jun 2012
Bulletin
– June 2012
Some cross-margining arrangements also extend the cross-CCP exposure netting functionality to variation margin payment obligations. ... Mutual offset arrangements permit participants to establish a derivatives position at one CCP and close it at another.
https://www.rba.gov.au/publications/bulletin/2012/jun/7.html
Australian Banks' Activities in Derivatives Markets: Products and Risk-Management Practices
10 Sep 1994
Bulletin
– September 1994
An associated issue highlighted in banks' responses to the survey was the need for a sound legal foundation for netting arrangements between counterparties. ... Forms of credit risk enhancement, other than netting, are not widely used by Australian banks.
https://www.rba.gov.au/publications/bulletin/1994/sep/1.html
Derivatives – Bank Activities and Supervisory Responses
10 May 1995
Bulletin
– May 1995
As part of its on-going analysis of bilateral netting arrangements, there also has been extensive technical work carried out, aimed at determining how netted exposures, should they eventually be permitted ... Gray (1994), ‘Default Risk and Derivatives:
https://www.rba.gov.au/publications/bulletin/1995/may/1.html
Economic and Financial Research in the Reserve Bank in 1994
10 Feb 1995
Bulletin
– February 1995
Two papers examined prudential supervisory issues. The paper by Marianne Gizycki and Brian Gray discusses the calculation of capital charges to cover default risks in a system that allows ‘netting’, whereby ... 9409 Gizycki, M. and B. Gray,
https://www.rba.gov.au/publications/bulletin/1995/feb/2.html
Box D: Core Principles for Systemically Important Payment Systems
10 Sep 2005
FSR
– September 2005
A system in which multilateral netting takes place should, at a minimum, be capable of ensuring the timely completion of daily settlements in the event of an inability to settle by ... The central bank should oversee compliance with the Core Principles
https://www.rba.gov.au/publications/fsr/2005/sep/box-d.html
The Australian High-Value Payments System
10 Mar 2004
FSR
– March 2004
To avoid this, the Payment Systems and Netting Act provides for the Reserve Bank to approve RTGS systems that meet specified criteria. ... A multilateral netting arrangement is one where obligations between three or more parties to financial transactions
https://www.rba.gov.au/publications/fsr/2004/mar/aus-high-val-pay-sys.html
Non-dealer Clearing of Over-the-counter Derivatives
20 Mar 2014
Bulletin
– March 2014
In 2009, the G20 leaders agreed that all standardised over-the-counter (OTC) derivatives should be cleared through central counterparties (CCPs). Accordingly, an increasing proportion of OTC derivatives are now centrally cleared, particularly where
https://www.rba.gov.au/publications/bulletin/2014/mar/9.html