BANK 4.5.24 Monitoring and reporting of netting agreements
(1) If directed by the Regulatory Authority, a banking business firm must demonstrate that its netting policy is consistently implemented, and that its netting agreements continue to be enforceable.
(2) The firm must keep adequate records to support its use of netting agreements and to be able to report netted transactions on both gross and net bases.
(3) The firm must monitor its netting agreements and must report and manage:
(a) roll-off risks;
(b) exposures on a net basis; and
(c) termination risks;
for all the transactions included in a netting agreement.
|Derived from QFCRA RM/2014-2 (as from 1st January 2015).|