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
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
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
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
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
Special Topic: Default Arrangements | 2010/11 Assessment
9 Mar 2023
The specific close-out method used will depend on market conditions,and the products in question. ... Use of auctions to close out exposures is less likely to be considered by ASX.
https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/assessments/2010-2011/special-topic.html
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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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