+Article 274 5.

Article 274 5.

Institutions may set to zero the exposure value of a netting set that satisfies all the following conditions:

(a) 

the netting set is solely composed of sold options;

(b) 

the current market value of the netting set is at all times negative;

(c) 

the premium of all the options included in the netting set has been received upfront by the institution to guarantee the performance of the contracts;

(d) 

the netting set is not subject to any margin agreement.

1. Overview

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1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards