Barclays 2015 Annual Report Download - page 296

294 I Barclays PLC Annual Report 2015 home.barclays/annualreport
Notes to the financial statements
19 Offsetting financial assets and financial liabilities continued
Derivative assets and liabilities
The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as the ISDA
Master Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty
can be offset and close-out netting applied across all outstanding transaction covered by the agreements if an event of default or other
predetermined events occur.
Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by
enabling the collateral to be realised in an event of default or if other predetermined events occur.
Repurchase and reverse repurchase agreements and other similar secured lending and borrowing
The ‘Amounts offset’ column identifies financial assets and liabilities that are subject to set off under netting agreements, such as global master
repurchase agreements and global master securities lending agreements, whereby all outstanding transactions with the same counterparty can be
offset and close-out netting applied across all outstanding transaction covered by the agreements if an event of default or other predetermined
events occur.
Financial collateral typically comprises highly liquid securities which are legally transferred and can be liquidated in the event of counterparty default.
These offsetting and collateral arrangements and other credit risk mitigation strategies used by the Group are further explained in the Credit risk
mitigation section on page 133.