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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Introduction
1 Dec 1994
RDP
9409
the legal issue is the extent to which such close-out netting contracts are enforceable at law. ... Where such laws exist, close-out netting would have little meaning since, for the failed company, only favourable contracts would be recognised.
https://www.rba.gov.au/publications/rdp/1994/9409/introduction.html
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OTC Derivatives Reform: Netting and Networks | Conference – 2013
19 Aug 2013
Conferences
values or at values reflecting any loss to the surviving party from replacing the trades (so-called close-out netting). ... Such losses arise when the market price of the contract moves adversely between the default event and the surviving counterparty's
https://www.rba.gov.au/publications/confs/2013/heath-kelly-manning.html
December: 1997-Sample Questionnaire
9 Mar 2023
Media Release
8. Does your institution engage in formal or informal payments netting arrangements for foreign exchange settlements? ... If so, to whom? do these arrangements include close-out netting provisions in the event of default?
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/annex-b.html
December: 1997-Risk Management Practices
9 Mar 2023
Media Release
While some of these agreements provide for payments netting as an option, all have close-out netting provisions in the event of a default by one party. ... The RBA has long supported the introduction of legislation to validate netting arrangements in
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/risk-management-practices.html
December: 1997-Glossary
9 Mar 2023
Media Release
Netting may take several forms which have varying degrees of legal enforceability in the event of default of one of the parties (see also close-out netting, netting by novation and ... Depending on the legal system, obligation netting can find a legal
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/annex-e.html
Default Risk and Derivatives: An Empirical Analysis of Bilateral Netting
30 Nov 2009
RDP
PDF
104KB
the legal issue is the extent to which such close-out netting contracts areenforceable at law. ... Where such lawsexist, close-out netting would have little meaning since, for the failed company,only favourable contracts would be recognised.
https://www.rba.gov.au/publications/rdp/1994/pdf/rdp9409.pdf
RESERVE BANK OF AUSTRALIA FOREIGN EXCHANGE SETTLEMENTPRACTICES IN AUSTRALIA ...
18 Dec 1997
Media Release
PDF
268KB
5.3.1 Counterparty exposure limits.355.3.2 Netting arrangements.355.3.3 Other risk management techniques.36. 5.4 INTERNATIONAL INITIATIVES. ... some form of netting for foreign exchange settlements, despite thecurrent legal uncertainty surrounding this
https://www.rba.gov.au/media-releases/1997/pdf/fxsp.pdf
The Model
22 Nov 2016
RDP
2016-07
For instance: we do not consider how networks affect the structure of risk and the efficiency of netting arrangements (e.g. ... Both have occurred in recent practice: SwapClear was able to close out the Lehman Brothers portfolio in 2008 without exceeding
https://www.rba.gov.au/publications/rdp/2016/2016-07/model.html
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Central Counterparty Links and Clearing System Exposures
2 Feb 2015
RDP
PDF
3395KB
For participantsi and j, let Xki j represent the net obligation of i to j in product k that could accruein the future over the close-out period. ... While participants may have an expectation that their positions will beprofitable, intermediate gains and
https://www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-12.pdf
Data and Exposure Analysis
29 Sep 2015
RDP
2015-02
The future regulatory minimum in non-centrally cleared settings is ten days, reflecting the likelihood that it will be more difficult to close out positions in a decentralised setting than via ... Initial margin again increases with the assumed closeout
https://www.rba.gov.au/publications/rdp/2015/2015-02/data-exposure-analysis.html
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