Bankruptcy and Close out: Difference between pages

Revision as of 10:08, 1 September 2018

Derivative instruments - early termination.

Close out is the early termination of an obligation under a derivative instrument, before the normal final maturity.

For example, for a futures contract this means taking a second offsetting position in order to remove the delivery obligation.

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-''Insolvency law''.
+''Derivative instruments - early termination''.
-Bankruptcy is a formal declaration of insolvency by a court.
+Close out is the early termination of an obligation under a derivative instrument, before the normal final maturity.
-Bankruptcy can apply to businesses and to individuals.
+For example, for a futures contract this means taking a second offsetting position in order to remove the delivery obligation.
-It provides a degree of protection for the debtor against its creditors, while also involving a loss of control by the debtor.
 == See also ==
-* [[Administration]]
+* [[Futures]]
-* [[Bankruptcy Code]]
+* [[ICE Swap Rate]]
-* [[Examinership]]
-* [[Going concern]]
-* [[Insolvency]]
-* [[Liquidation]]
-* [[Receivership]]
-[[Category:Accounting,_tax_and_regulation]]
+[[Category:Manage_risks]]
-[[Category:Compliance_and_audit]]
+[[Category:Risk_frameworks]]