12Reserve Bank may approve netting arrangement

12 Reserve Bank may approve netting arrangement

(1) The Reserve Bank may approve the arrangement if it is satisfied that: (a) systemic disruption in the financial system could result if a participant went into external administration and the arrangement were not approved under this section; and (b) the arrangement provides for netting to occur at least once on each business day; and (c) the rules governing the arrangement establish a coordinator for the arrangement; and (d) the coordinator of the arrangement has the resources, competency and integrity needed to administer the arrangement; and (e) the rules governing the arrangement provide that if a party to the arrangement goes into external administration: (i) the party must notify the coordinator as soon as practicable; and (ii) the coordinator may exclude the party from the arrangement; and (f) the rules governing the arrangement require a party to the arrangement to notify the coordinator as soon as practicable if they have reasonable grounds to suspect that another party to the arrangement is insolvent; and of any other matters specified in the regulations. (2) An approval: (a) must be given in writing; and (b) may be given subject to the terms and conditions specified in the approval.