Circular Re. the Close-out Netting and related Collateral Arrangements Regulation

Saudi Central Bank (SAMA)
No.: 1068705
Date: 18/08/1446H
Attachments: 14 pages (Arabic)

Circular

To:
Peace, mercy and blessings of God be upon you, Subject: Regulation on Close-out Netting and Related Collateral Arrangements and Eligible Financial Contracts.

Based on the authorities vested in the Saudi Central Bank under the Saudi Central Bank System issued by Royal Decree No. (36/M) dated 11/4/1442H, and with reference to the Bankruptcy Law and its Executive Regulations.

You are hereby notified of the Governor's Decision No. (46/1) dated 18/08/1446H, which approves the Regulation on Close-out Netting and Related Collateral Arrangements according to the attached wording; accompanied by a list of Eligible Financial Contracts. Furthermore, we note that the aforementioned list of Eligible Financial Contracts falls within what has been designated by the Saudi Central Bank and the Capital Market Authority, in coordination with the Ministry of Commerce, in implementation of the Bankruptcy Law and its Executive Regulations.

For your information, and to be acted upon by financial institutions subject thereto as of the date of its publication.

Yours sincerely,
Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Financial institutions under the supervision of the Central Bank.

P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000 P.O. Box: 2992, Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000