Netting

An agreed offsetting of positions or obligations by trading partners or participants.

The netting reduces a large number of individual positions or obligations to a smaller number of obligations or positions.

Netting may take several forms which have varying degrees of legal enforceability in the event of default of one of the parties.

See also

• Bilateral netting
• Close-out netting
• Deletion
• Minimum standards of the Lamfalussy Report
• Multilateral netting
• Netting by novation
• Offset
• Payment netting
• Position netting
• Substitution