Legally enforceable netting arrangements permit Banking Units to exchange eligible margins for non-centrally cleared derivative mark-to-market exposures. Regulation 19 permits a Banking Unit to exchange margins with a counterparty Banking Unit or overseas regulated entity under a legally enforceable netting ... Summary
Legally enforceable netting arrangements permit Banking Units to exchange eligible margins for non-centrally cleared derivative mark-to-market exposures.
Regulation 19 permits a Banking Unit to exchange margins with a counterparty Banking Unit or overseas regulated entity under a legally enforceable netting arrangement for non-centrally cleared over-the-counter currency, interest-rate, credit and commodity derivative contracts. The exchange reflects mark-to-market exposure and may involve specified foreign currencies, permissible listed debt securities and sovereigns. Effective 7 July 2023, "freely convertible currency" was replaced with "specified foreign currencies" as the eligible currency description.
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