London, January 2006: Rabobank International has purchased the Framesoft Agency Module which extends the existing installation of the Framesoft Contract Repository (FCR).
In light of the growing volume of the business covered by Agency Agreements, Rabobank decided to acquire Framesoft’s Agency module in order to extend close-out netting to credit risks arising from agency transactions. FCR now produces separate netting pools for each indirect principal covered under an agency agreement according to the product coverage and counterparty types of the legal opinion of its own jurisdiction as well as the overall agreement attributes.
Rabobank has used the Framesoft Contract Repository since 1999 for group-wide close-out netting and contract management. With the ability to automatically check all agreements against the respective legal opinions for close-out netting, Rabo has achieved a significant reduction of credit exposure for both limits management and regulatory capital relief associated with OTC derivatives trading.