Counterparty credit risk: Difference between revisions
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Netting Sets: | Netting Sets: | ||
{{box|Netting Set is a group of transactions with a single counterparty that are subject to a legally enforceable [[bilateral netting arrangement]] and for which netting is recognised for {{tag|Regulatory Capital}} purposes under the provisions of paragraphs 96(i) to 96(v) of this Annex, this Framework text on credit risk mitigation techniques, or the Cross-Product Netting Rules set forth in this Annex. Each transaction that is not subject to a legally enforceable bilateral netting arrangement that is recognised for regulatory capital purposes should be interpreted as its own netting set for the purpose of these rules.}} | {{box|Netting Set is a group of transactions with a single counterparty that are subject to a legally enforceable [[bilateral netting arrangement]] and for which netting is recognised for {{tag|Regulatory Capital}} purposes under the provisions of paragraphs 96(i) to 96(v) of this Annex, this Framework text on credit risk mitigation techniques, or the Cross-Product Netting Rules set forth in this Annex. ''Each transaction that is not subject to a legally enforceable bilateral netting arrangement that is recognised for regulatory capital purposes should be interpreted as its own netting set for the purpose of these rules''.}} | ||
The interpretation of the italicised section is key. | The interpretation of the italicised section is key. | ||
{{bipruanatomy}} | {{bipruanatomy}} |