Derivatives · glossary
A netting opinion is a lawyer's yearly opinion, country by country, that close-out netting would survive an insolvency there. A resolution stay lets the authority rescuing a failing bank briefly stop its counterparties ending their trades. Chapter 14
Explained in Chapter 14, The Wider Room, of Derivatives.
Two more terms explain why a bank asks where your client is based. A netting opinion is a lawyer's opinion, renewed each year for each country, that close-out netting would hold if a counterparty there became insolvent. Banks collect these opinions, because they let a bank treat all its trades with a client as one net sum.Read Chapter 14, The Wider Room →
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