Close-out netting and Custodian: Difference between pages

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A special form of netting that occurs following some predefined event such as default.
1.
Close-out netting is intended to reduce exposures on open contracts if one party meets certain conditions specified by the contract (for example, becomes subject to insolvency procedures) before the settlement date. 


Also referred to as default netting, open contract netting or replacement contract netting.
A bank, financial institution or other entity responsible for maintaining accurate and up-to-date registration details of the beneficial owners of those securities for which it has custodial responsibility.
 
Custodians are also responsible for the administration of the assets they hold (including trade settlement), the collection of interest or dividends, exercising the voting rights attached to certain types of securities if so required, as well as being able to provide other services such as the production of portfolio valuations and performance measurement.
 
 
As a result of dematerialisation, the need to hold and safe keep securities in physical form has been largely removed in many of the world’s major securities markets.
 
 
2.
 
Any organisation or individual that holds assets on behalf of another organisation or individual.




== See also ==
== See also ==
* [[Netting]]
* [[Agent bank]]
* [[Bank]]
* [[Beneficial owner]]
* [[Custody]]
* [[Custody risk]]
* [[Dematerialisation]]
* [[Dividend]]
* [[Global custodian]]
* [[Interest]]
* [[Local custodian]]
* [[Registration]]
* [[Security]]
* [[Securities settlement system]]
* [[Sub-custodian]]
* [[Trustees]]
 
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 21:05, 10 July 2022

1.

A bank, financial institution or other entity responsible for maintaining accurate and up-to-date registration details of the beneficial owners of those securities for which it has custodial responsibility.

Custodians are also responsible for the administration of the assets they hold (including trade settlement), the collection of interest or dividends, exercising the voting rights attached to certain types of securities if so required, as well as being able to provide other services such as the production of portfolio valuations and performance measurement.


As a result of dematerialisation, the need to hold and safe keep securities in physical form has been largely removed in many of the world’s major securities markets.


2.

Any organisation or individual that holds assets on behalf of another organisation or individual.


See also