UAE netting under scrutiny

Author: | Published: 26 Jan 2018

The legal recognition of close-out netting provisions in financial contracts is increasingly significant to parties in the UAE as the region advances implementation of Basel III principles

Close-out netting is one of the primary means of mitigating credit risks associated with over-the-counter (OTC) derivatives trading between two counterparties. Close-out netting provisions are typically incorporated into a master-level agreement (a Master Agreement) regulating all the relevant individual transactions between the two parties and providing for a single net amount to be payable between the parties in the event of a close-out....