(1) The write-down and conversion powers in relation to a liability arising from a derivative shall only be exercised upon or after closing-out that derivative.
(2) A resolution order may terminate and close out any derivative contract.
(3) It shall not be necessary to terminate or close out a derivative contract where a derivative liability under that contract has been excluded from the application of the bail-in tool under Regulation 80(9).
(4) Where derivative transactions are subject to a netting agreement, the independent party responsible for the valuation or the resolution authority shall determine as part of the valuation under Regulation 65 or 66 the liability arising from those transactions on a net basis in accordance with the terms of the agreement.
(5) The resolution authority shall determine the value of liabilities arising from derivatives in accordance with the following:
(a) appropriate methodologies for determining the value of classes of derivatives, including transa
…