The Saudi Central Bank (SAMA) announces the issuance of the Close-out Netting and Related Collateral Arrangements Regulations in the Kingdom of Saudi Arabia for institutions that fall under SAMA's supervision.

The Regulations govern Close-out Netting agreements and financial collateral arrangements related to one or more Qualified Financial Contracts when at least one party is subject to SAMA's supervision. The regulations provide legal cushion to mitigate risks in financial contracts, irrespective of bankruptcy proceedings.

The issuance of netting & collateral regulations are consistent with the Kingdom's legal framework and aligned with relevant international standards and best practices. In addition, the regulations contribute to localizing financial institutions' transactions in the derivatives and swaps markets, enhancing risk management efficiency, and supporting the stability of the financial sector.

The Close-Out Netting and Related Collateral Arrangements Regulations will take effect immediately and will apply to all financial institutions regulated and supervised by SAMA. The complete text of the regulations is available on SAMA's Rulebook Platform through SAMA's official website.​