Substitution: Difference between revisions
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imported>Doug Williamson m (Spacing 20/8/13) |
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The substitution of one party for another in respect of an obligation. | The substitution of one party for another in respect of an obligation. | ||
In a netting and settlement context, this generally equates to altering a contract between two parties so as to bring in a third party (sometimes the clearing house, as in an option and future trade) which acts as counterparty to each of the two parties and ensures the original contract between the two parties is satisfied and discharged. | In a netting and settlement context, this generally equates to altering a contract between two parties so as to bring in a third party (sometimes the clearing house, as in an option and future trade) which acts as counterparty to each of the two parties and ensures the original contract between the two parties is satisfied and discharged. | ||
== See also == | == See also == | ||
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* [[Novation]] | * [[Novation]] | ||
* [[Settlement]] | * [[Settlement]] | ||
Revision as of 08:23, 20 August 2013
The substitution of one party for another in respect of an obligation.
In a netting and settlement context, this generally equates to altering a contract between two parties so as to bring in a third party (sometimes the clearing house, as in an option and future trade) which acts as counterparty to each of the two parties and ensures the original contract between the two parties is satisfied and discharged.
