Multilateral netting: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Payments and payment systems) |
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* [[Multilateral net settlement system]] | * [[Multilateral net settlement system]] | ||
* [[Netting]] | * [[Netting]] | ||
* [[Payments and payment systems]] | |||
[[Category:Corporate_financial_management]] | [[Category:Corporate_financial_management]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Treasury_operations]] | [[Category:Treasury_operations]] | ||
Revision as of 17:04, 29 November 2014
An arrangement among three or more parties to net their obligations.
The obligations covered by the arrangement may arise from financial contracts, transfers or both.
The multilateral netting of payment obligations normally takes place in the context of a multilateral net settlement system.
This system consolidates the cross-border payments of the various subsidiaries after conversion into a common, reference currency.
