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
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
See 12 more results from "RDP 9409"
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
The Foreign Exchange Market and Central Counterparties
10 Mar 2010
Bulletin
– March 2010
parameters for the management of this replacement-cost risk through bilateral (close-out) netting and margin requirements. ... Bilateral payment and close-out netting under ISDA Master Agreements is common market practice in the foreign exchange market
https://www.rba.gov.au/publications/bulletin/2010/mar/8.html
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
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
See 6 more results from "RDP 2015-02"
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
See 4 more results from "RDP 2016-07"
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
Promoting Liquidity: Why and How? | Conference – 2008
14 Jul 2008
Conferences
Importantly, there can be close correlations between reductions in market liquidity and funding liquidity. ... Particularly for structured finance products, which can be designed to adhere to the rating agency's ratings criteria, the close relationship
https://www.rba.gov.au/publications/confs/2008/kearns-lowe.html
Model Framework
31 Dec 2013
RDP
2013-12
For participants i and j, let. represent the net obligation of i to j in product k that could accrue in the future over the close-out period. ... For a close-out period similar in length to the frequency over which variation margining is calculated,.
https://www.rba.gov.au/publications/rdp/2013/2013-12/model-framework.html
See 7 more results from "RDP 2013-12"
OTC Derivatives Reforms and the Australian Cross-currency Swap Market
24 Jun 2013
Bulletin
– June 2013
Reforms to improve the management of counterparty credit risk in over-the-counter (OTC) derivatives markets are underway globally. A key pillar of the reforms is the migration of these markets to central counterparties (CCPs), while higher capital
https://www.rba.gov.au/publications/bulletin/2013/jun/7.html