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Clifford Chance

Clifford Chance

Briefings

Netting: A UAE perspective

28 February 2018

The legal recognition of close-out netting provisions in financial contracts is increasingly significant to parties in the UAE, particularly as the region advances implementation of Basel III principles. The consequences of non-netting impacts a wide range of UAE market participants beyond financial institutions.


This briefing explores:

  • The role of netting as a key tool to mitigate counterparty credit risk as recognised by international legislative bodies and trade associations
  • Key elements of a legal framework to support netting enforceability
  • Successes to date in UAE financial free zones where legal certainty on close-out netting have been achieved
  • Market participants impacted by netting enforceability: a case for federal-level netting law.

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