• Executive Summary
  • Introduction
  • 1st Part - Use, benefits and drawbacks of netting
  • I. Netting in today's financial markets
  • A. The importance of netting – market data
  • B. Netting and master agreements
  • C. Set-off and the different types of netting agreements
  • Set-of
  • Settlement netting
  • Netting by novation
  • Close-out netting
  • D. Solvent and insolvency netting; termination event
  • E. Bilateral settlement and central clearing
  • F. Multi-branch netting
  • G. Multilateral netting
  • II. Benefits flowing from the use of netting
  • A. The individual perspective: a competitive advantage
  • Reduction of counterparty risk
  • Capital adequacy and cost of capital
  • B. The market perspective: increased systemic stability and liquidity
  • Systemic stability
  • Market liquidity
  • III. The drawbacks inherent in netting
  • A. Shifting general policies in respect of insolvency regimes?
  • B. Pre-emption of regulatory intervention
  • 2nd Part - The need for an international instrument on netting
  • I. The status quo on enforceability of netting
  • A. Personal and material scope
  • B. Issues relating to general principles of law
  • Association with set-off rules
  • Non-eligible contracts included in the netting agreement; gambling
  • C. Issues relating to enforceability under insolvency law
  • ‘Cherry picking’ and prohibition of early termination
  • Preferences and suspect periods
  • II. Private law implications of the regulatory moratorium
  • Cross-border consistency of regulatory safeguards
  • Rights governed by foreign law
  • III. Assessment: the need for an international instrument
  • Considering the aim of enhancing enforceability of netting agreements
  • Considering the aim of accommodating regulatory powers in foreign private law
  • Result
  • 3rd Part - Guidelines for an international instrument
  • I. Approach
  • II. Personal scope
  • III. Material scope
  • A. Netting
  • B. Agreement
  • C. Financial contracts
  • IV. The principle of enforceability of netting agreements