Netting by novation

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.

See also

• Discharge of contract
• Netting
• Novation