Close-out netting

Roles that need it

• Legal Counsel
• Credit Risk Analyst
• Collateral Management Analyst
• Capital Reporting Analyst

Skills it belongs to

• Legal research and regulatory interpretation
• Derivatives and how they work

Related concepts

• ISDA Master AgreementThe ISDA Master Agreement is the standard contract published by the International Swaps and Derivatives Association under which two parties trade over-the-counter derivatives. It sets common terms, events of default and termination, and close-out netting, with a schedule for negotiated choices; each trade is then documented by a confirmation.
• CSA (Credit support annex)A credit support annex (CSA) is the part of International Swaps and Derivatives Association (ISDA) documentation that governs collateral for derivatives between two parties: eligible assets, haircuts, thresholds, minimum transfer amounts, valuation and timing of calls. Regulatory CSAs set the terms needed to meet EU margin rules for uncleared derivatives.
• CCP (Central counterparty)A central counterparty (CCP) is an entity that interposes itself between the parties to trades in one or more markets, becoming the buyer to every seller and the seller to every buyer. It manages counterparty risk through membership rules, margin, a default fund and a default waterfall, and in the EU is authorised under the European Market Infrastructure Regulation (EMIR).

Sources

• Directive 2002/47/EC (Financial Collateral Directive), EUR-Lex (external site) accessed 31 Oct 2026
• ECB glossary (C) (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.