Risk ManagementClose-out Netting of Clearing Contracts
Close-out Netting of Clearing Contracts
- JSCC has entered into the "Agreement for Close-out Netting of Clearing Contracts" related to each of clearing services (hereinafter collectively referred to as the "Side Letters"）between a Clearing Participant who desires to conclude such agreement.
- The Side Letters set out the procedure to terminate of Cleared Contracts and Close-out Netting of rights and obligations related to each clearing service with an individual Clearing Participant, in cases where the Close-out Event, including Default and/or a filing of bankruptcy proceedings in respect of JSCC has occurred.
- As well as obtaining the Legal Opinion on the enforceability of the Close-out Netting based on the Side Letters (the Netting Opinion), JSCC periodically confirms that there have been no relevant amendment to laws and ordinances, precedents and interpretations of the laws and ordinances that could materially and adversely affect the enforceability.
*"The Legal Opinion on the enforceability of the Side Letters (the Netting Opinion) is disclosed to Clearing Participants and parties who are scheduled to acquire Clearing Qualification only.
If you have any inquiry on the Side Letters, please visit the site below and fill in the form.
