Regulatory Alerts2019-12-31
Law on Financial Collateral Arrangements, Netting and Derivatives
The Parliament of Georgia enacted this law to establish a regulatory framework for derivatives, netting, and financial collateral arrangements to develop the domestic derivatives market. It defines key terms such as close-out netting and financial instruments while ensuring the enforceability of netting agreements even during insolvency or limited activity regimes. The legislation also regulates derivative transactions, allowing them to be concluded verbally or in writing and validating those governed by foreign law.
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