Netting by novation: Difference between revisions
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Netting by novation agreements allow for individual forward-value contractual commitments, such as foreign exchange contracts, to be discharged upon confirmation and replaced by new obligations, all of which form part of a single agreement. | Netting by novation agreements allow for individual forward-value contractual commitments, such as foreign exchange contracts, to be discharged upon confirmation and replaced by new obligations, all of which form part of a single agreement. | ||
Amounts due under a discharged contract will be added to running balances due between the parties, in each currency and at each future value date. | Amounts due under a discharged contract will be added to running balances due between the parties, in each currency and at each future value date. | ||
== See also == | == See also == | ||
* [[Discharge of contract]] | |||
* [[Netting]] | * [[Netting]] | ||
* [[Novation]] | * [[Novation]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Cash_management]] | |||
[[Category:Liquidity_management]] | |||
Latest revision as of 17:20, 2 October 2022
Netting by novation agreements allow for individual forward-value contractual commitments, such as foreign exchange contracts, to be discharged upon confirmation and replaced by new obligations, all of which form part of a single agreement.
Amounts due under a discharged contract will be added to running balances due between the parties, in each currency and at each future value date.
