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Counterparty credit risk: Difference between revisions
→Section I: Definitions and general terminology
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{{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'''''.}} | ||
Note this definition of Netting Sets is for all intents and purposes identical to the one in [[CRD IV]]: | |||
{{crdiv|272(4)}} | |||
The interpretation of the italicised section is key. | The interpretation of the italicised section is key. | ||