Jump to Content Jump to Main Navigation

3 On Close-Out Netting

Marcel Peeters

From: Transnational Securities Law

Edited By: Thomas Keijser

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 14 July 2024

Close-out netting — Credit risk — Geneva Securities Convention — Liquidity — Basel accords — Basel committee on Banking Supervision — Financial Stability Board (FSB)
3.01 Close-out netting is a legal technique of great importance to the operation of the financial markets. There are various forms that this technique may take, but by way of a brief introduction (and ignoring the differences between the forms) it may be said that ‘close-out netting’ generally refers to the early termination of financial transactions between two parties upon the occurrence of an event of default (or similar event), followed by the determination of a final net amount due from one of the parties to the other in respect of that termination. 3.02...
Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.