- Close-out netting has reduced over-the-counter derivatives credit exposure by over 85%. Without the benefits of netting, banks worldwide might face a capital shortfall of over $500 billion.
- Close-out netting is necessary because it enables derivatives participants to protect against adverse market changes following default of a counterparty.
- Policy-makers have consistently supported the enforceability of close-out netting because it promotes financial system stability.
- Current proposals designed to promote orderly resolution of failed financial institutions should be crafted carefully to avoid weakening the benefits of close-out netting.
Documents (1) for The Importance of Close-Out Netting
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ISDA SIMM EU Regulatory Approval Requirements
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Creating Value - IQ June 2025
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Bulk Adherence Upload Page
Please download the attached Excel worksheet and fill out a separate row for each adherence. Then select and upload your completed file using the buttons below. If any errors are found, please correct and re-upload. Please allow the process time...