Banker's draft and Close-out netting: Difference between pages
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A special form of netting that occurs following some predefined event such as default. | |||
Close-out netting is intended to reduce exposures on open contracts if one party meets certain conditions specified by the contract (for example, becomes subject to insolvency procedures) before the settlement date. | |||
Also referred to as default netting, open contract netting or replacement contract netting. | |||
== See also == | == See also == | ||
* [[ | * [[Netting]] | ||
* [[ | * [[Open contract netting]] | ||
Revision as of 17:53, 22 May 2016
A special form of netting that occurs following some predefined event such as default.
Close-out netting is intended to reduce exposures on open contracts if one party meets certain conditions specified by the contract (for example, becomes subject to insolvency procedures) before the settlement date.
Also referred to as default netting, open contract netting or replacement contract netting.
