Document background
The Master Netting Agreement is essential for parties engaging in multiple financial transactions in Malaysia who wish to reduce their credit risk exposure through netting arrangements. This document is specifically designed to comply with Malaysian legal requirements, particularly the Netting of Financial Agreements Act 2015 and related financial services legislation. It provides a legally enforceable framework for payment netting and close-out netting, crucial for risk management in financial transactions. The agreement is particularly relevant for financial institutions, banks, and corporations operating in Malaysia's financial markets, covering various financial instruments including derivatives, securities transactions, and Islamic financial products. It includes provisions for both conventional and Shariah-compliant transactions, reflecting Malaysia's dual financial system.
