Article

In Practice: The Final Piece of the G20 Netting Puzzle

December 20, 2024

Butterworths Journal of International Banking and Financial Law

In this In Practice article the authors consider the possible implications of draft close-out netting legislation in the Kingdom of Saudi Arabia on derivatives, repurchase and stock lending transactions with Saudi counterparties. Originally published in the November 2024 edition of Butterworths Journal of International Banking and Financial Law.

As one of the final G20 countries to consider adopting close-out netting legislation, Saudi Arabia intends to bring its financial laws closer to international standards, encouraging greater participation in global markets. In November 2023, the Saudi Central Bank (SAMA) issued a revised draft of the Close-out Netting and related Collateral Arrangements Regulation (the Regulation) for public consultation.

The Regulation is a vital element of Saudi Arabia’s Vision 2030, a strategic initiative aimed at transforming the Kingdom’s economy. It aims to provide legal certainty to parties involved in derivatives, repurchase and stock lending transactions by ensuring the enforcement of closeout netting in the event of a default of a Saudi financial institution.

Khaled Alhuneidi (licensed to practice in Maryland only) contributed to this article.

Endnotes

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In Practice: The Final Piece of the G20 Netting Puzzle

Endnotes

Contacts

Abdullah A. Alsaeed

Dean Naumowicz

Yana Nastyushenko