Role of the netting agreement
- Valuer must determine single close-out amount for netted derivatives under resolution
Retained EU Law
2016
United Kingdom
Commission Delegated Regulation (EU) 2016/1401 of 23 May 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms with regard to regulatory technical standards for methodologies and principles on the valuation of liabilities arising from derivatives (Text with EEA relevance)
At a glance
What's here
5 compliance obligations
Who this Act binds
Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Valuation principle for early termination amount
- Calculate early termination amount for derivative liabilities in resolution
Determination of the close-out amount
- Determination of close-out amount by the valuer
Valuation of cleared derivative contracts entered into between an institution under resolution and a CCP
Other duties (1) — Crown / regulator
- Resolution authority must notify CCP of close-out decision Statutory regulator
Point in time for establishing the value of derivative liabilities and early determination
- Valuer must determine derivative liabilities at specified times
Browse 4 other sections — procedural / definitional / commencement
Definitions
Comparison between the destruction in value that would arise from the close-out and the bail-in potential of derivative contracts
Communication of the decision to close out
Entry into force
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