SAMA seeks public input on draft close-out netting, related collateral arrangements regulation

Saudi Central Bank headquarter

The Saudi Central Bank (SAMA) is seeking public feedback on the draft close-out netting and related collateral arrangements regulation through the “Istitlaa” platform. 

The regulation provides a framework that will govern the close-out netting process and related collateral arrangements, SAMA said in a statement.  

It establishes clear and enforceable rules in accordance with the regulatory framework in the Kingdom and relevant international standards and practices.  

The regulation aims to reduce credit risk in financial derivatives and ensure hedging against adverse market movements and counterparty risk. 

Suggestions and observations on the draft regulation will be accepted within 15 days of this announcement to assess their relevance in finalizing the rules, the central bank added.