Netting

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1.

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.


2.

More broadly, any other situation in which offsetting positive and negative amounts are combined, with the result of producing a smaller net positive or negative amount.


See also


Other resources

Net benefits, The Treasurer, 2015