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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Standard 1: Legal basis | A1.2 ASX Clear (Futures) | 2015/16 Assessment of ASX Clearing and Settlement Facilities
18 May 2023
close-out netting’ rights). The rules do not interfere with ASX Clear (Futures)' proposed arrangements for addressing a liquidity shortfall (see CCP Standard 7.9). ... The continued appropriateness of close-out netting rights will need to be assessed
https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/assessments/2015-2016/asx-clear-futures/standard-01.html
Special Topic – Default Management | 2015/16 Assessment of ASX Clearing and Settlement Facilities
18 May 2023
ASX may also consult with its default brokers and the DMG in determining the appropriate close-out strategy. ... Netting down positions allows for faster execution and lower transaction costs, and mitigates the potential market impact arising from the
https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/assessments/2015-2016/special-topic-default-management.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
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
Appendix B: Detailed Assessment of the Reserve Bank Information and Transfer System | 2014 Assessment of the Reserve Bank Information and…
9 Mar 2023
Close-out netting provisions included in repo contracts with participants provide for the immediate liquidation of collateral in the event of default. ... In the event of insolvency, the close-out netting provisions included in the repo agreements allow
https://www.rba.gov.au/payments-and-infrastructure/rits/self-assessments/2014/appendix-b.html
Standard 1: Legal Basis | Financial Stability Standards for Central Counterparties December 2012
9 Mar 2023
Laws and regulations specific to a central counterparty's activities include those governing: its authorisation, regulation, supervision and oversight; rights and interests in financial instruments; settlement finality; close out; novation; netting;
https://www.rba.gov.au/payments-and-infrastructure/financial-market-infrastructure/clearing-and-settlement-facilities/standards/central-counterparties/2012/standard-1.html
Assessment against the Core Principles | 2009 Self-assessment of the Reserve Bank Information and Transfer System
9 Mar 2023
In the event of insolvency, the close-out netting provisions included in the repo agreements allow the Reserve Bank to close out or terminate the second leg of the repo immediately. ... At the end of the settlement close session, any remaining queued
https://www.rba.gov.au/payments-and-infrastructure/rits/self-assessments/2009/assessment.html
Self-assessment of RITS against the Principles | 2013 Self-assessment of the Reserve Bank Information and Transfer System
9 Mar 2023
Close-out netting provisions included in repo contracts with participants provide for the immediate liquidation of collateral in the event of a default. ... This right is supported by Part 4 of the. Payment Systems and Netting Act 1998.
https://www.rba.gov.au/payments-and-infrastructure/rits/self-assessments/2013/assessment.html