(Published October 15, 2018)

The Model Netting Act is a model law intended to set out, by example, the basic principles necessary to ensure the enforceability of bilateral close-out netting, including bilateral close-out netting on a multibranch basis, as well as the enforceability of related financial collateral arrangements.

The Model Netting Act draws on ISDA’s 30 years of experience of working with policy-makers and regulators across the globe on close-out netting legislation, and provides guidance and model provisions for those legislators looking to increase legal certainty under local law for netting. The 2018 act and accompanying guide expand upon previous versions, with updates to reflect the widespread adoption of bank resolution regimes, the introduction of mandatory margin requirements and the growth of Islamic finance.

Translations into several languages are available here.

On October 15, 2018, ISDA held a webinar on the Model Netting Act and Guide, which you can find out about here.